Investing oracle Warren Buffet once said that an insurance policy is just a promise on a piece of paper, and businesses have been banking on that understanding for decades. But as losses rise and carriers go bankrupt, that business foundation could disintegrate.

Since the federal government stepped in with $85 billion to prop up failing insurance giant AIG more than a year ago, the bloated insurance sector shows no signs of recovery. With all signs pointing to consolidation and insolvency, subscribers could be left with nothing but a piece of paper and broken promises.

During previous downturns, insurance carriers bought each other out when things got rough, but Robert Kulle, an agent with Heritage Capital Strategies in Oxnard, thinks this recession will be different.

The full version of this article is only available in the print edition. To view everything the Business Times offers, see this week’s print version or SUBSCRIBE to the print edition for $49.99 today.