Business
Municipal Bankruptcy Fears Drive INSCOR's Growth
Municipal Bankruptcy Fears Drive INSCOR's Growth.
About this update from Oicintra, Inc.
[{"type":"text","content":"\n \n \n Municipal Bankruptcy Fears Drive INSCOR's Growth\n \n \nMunicipal Bankruptcy Fears Drive INSCOR's Growth\n \n BALTIMORE, MD--(Marketwired - Nov 14, 2013) -  Goldman Small Cap Research, a stock market research firm focused on the small cap and micro-cap sectors, notes that the town of Desert Hot Springs, California is on the verge of a bankruptcy filing after a new finance director discovered a $3 million shortfall in its budget of $13.5 million. This is not music to the ears of its citizens or its creditors but it is a story not unfamiliar to the senior management of INSCOR, Inc. (OTC Pink: IOGA).\n As is the case with municipalities such as Detroit, San Bernardino, Stockton, and many others, unmanageable and unreasonable pension costs/obligations are the culprits. Nationwide, these unfunded retiree health care and Other Post-Employment Benefits (OPEB) figures total an estimated $1.5 trillion in unfunded liabilities. \n While it may be too late for most of these other cities to utilize the INSCOR initiatives, a number of cities and towns that are on the edge of their own financial issues have finally become proactive and are seeking alternatives such as the INSCOR program in order to stave off a fiscal crisis.\n Cities that still have an opportunity to stem the OPEB bleeding in its tracks can engage in the solution used by Fortune 500 companies and offered by INSCOR that is tailored toward the 67,000 governmental and agency markets in the U.S. The INSCOR \"FIT\" (Financed Insurance Trust) combines the procurement of specifically-designed life insurance on active employees using funds borrowed from the financial sector, or bond issuance, and secured by the insurance policies themselves. This method generates substantial cash flow to fund these OPEB liabilities at reduced costs to the municipalities. \n As a result, a FIT OPEB plan can provide a cash stream to support each year's OPEB obligations, and fund future OPEB liabilities with fewer spending increases, tax increases, or reduction in benefits. Plus, with interest rates at historical lows, some municipalities can benefit from very low initial costs. \n With few options, let alone low-cost alternatives to the problem available, INSCOR appears poised to leverage the current panic and effect real change in government financial management, thus generating significa...