Executive Life was a big buyer of junk bonds.

Executive Life had reported a $528.4 million capital surplus, an excess of assets over liabilities.

Executive Life invested nearly two-thirds of its assets in junk bonds, far higher than most insurance companies.

But then, Executive Life was among the industry's biggest money makers before its demise.

Executive Life was also more vulnerable to a customer run because it sold its policies through stockbrokers rather than insurance agents.

Executive Life was also vulnerable by virtue of the size of its clients.

Executive Life was in deep trouble at the time.

Executive Life was then the insurance company with the largest portfolio of junk bonds.

The decision has created uncertainty over plans to revive Executive Life.

The plan must still be approved by the guaranty associations in the 47 states where Executive Life does business.