WOW – there you are, an investor. You are working with a stock broker who has this little insurance policy from some official sounding organization “SIPC”. This almost sounds like FDIC, doesn’t it?
I came across this article today http://usawatchdog.com/sipc-insurance-scam-from-fraud-street-professor-laurence-kotlikoff/ that caught my attention – it calls SIPC Insurance scam.
The abridged version is that SIPC (Securities Investor Protection Corporation) is supposed to be insuring up to $500,000 of your invested assets with stock brokers. This is to protect you against fraud and Ponzi schemes. In this article Dr Kotikoff states that SIPC not only denies your claims but they will send you a bill.
SIPC Insurance Scam
Dr. Kotlikoff is stating that in his opinion SIPC is a scam!
You might be interested in a second opinion about your situation