The guaranteed investment contract is the first the bond insurer has provided for an insurance company.

But new investment contracts fell to $5 billion last year, down 40 percent.

"You want a transparent and above- board process of people getting investment contracts."

It increased reserves by $720 million last month to cover losses in guaranteed investment contracts after the stock market declined.

Today, most large insurers have billions of dollars in "guaranteed investment contracts" on their books.

Holders of guaranteed investment contracts will receive no payments for now.

Some 60 to 75 percent of employees' own money is in guaranteed investment contracts, retirement experts say.

A stabilization clause is a risk management device used in investment contracts.

No investment contract may be sold or signed outside of an office place.

Some have even abandoned using guaranteed investment contracts for 401(k) plans.