Life Insurance Companies Don’t Like to Pay Either

The Wall Street Journal has a piece titled “Insurers Sued Over Death Bets: Scrutiny on Secondary-market Policies That Paid Investors When Others Died” by Leslie Scism

The story runs something like this.  Old people take out insurance on themselves.  Then they sell it to investors, who collect on the insurance if the old person dies.  It is very similar to the same racket that various companies, such as Wal-mart, are involved in with taking policies out against their employees.

The insurance companies were taking their fees, and occasionally one of the old people would die, but of course the actuary tables should be able to take that into account: right?

Apparently not.  Because the insurance companies have been denying benefits, and preemptively canceling policies.  Why?

Well buried in the seventh paragraph we find out:

The life-policy secondary market was one of many sent reeling by the global financial crisis of 2008-09, but it also has been hurt by revised actuarial tables, which show older people living longer

What, say it is not so!  The insurance companies denying benefits because they found an error in their tables!  It is not possible.

The insurers contend they are acting in the name of good public policy: State insurable-interest laws require an insurance buyer to have a bigger stake in the insured person’s continued well-being than in his death.

Mind you these are the people that have begun data-mining social networking sites to help to obtain additional information on prospective client that would likely not pass muster with the FTC if asked on an insurance application link.  But that is different:  they aren’t losing any money doing that!

Our spies are everywhere….

Even at Manresa.  We have a very busy news week coming folks. Stay tuned as always.

Now I’d like to offer this prayer for Tom Wilkinson:

O Divine Prisoner of the sanctuary, Who for love of us and for our salvation not only enclosed Yourself within the narrow confines of human nature and then hid Yourself under the veils of the Sacramental Species, but also continually live in the tabernacle! Hear our prayer which rises to You from within these walls and which longs to express to You our affection, our sorrow, and the great need we have of You in our tribulations – above all, in the loss of freedom which so distresses us.

For some of us, there is probably a voice in the depths of conscience which says we are not guilty; that only a tragic judicial error has led us to this prison. In this case, we will draw comfort from remembering that You, the most August of all victims, were also condemned despite Your innocence. Continue reading “Our spies are everywhere….”

“Lawn Mower Fumes” Phil Bryant on the coast to announce for Gov.

Phil "Lawn Mower Fumes" Bryant

He’s done absolutely nothing for the coastal insurance crisis in Mississippi as Lite Gov, professing faith in a mythical free market that does not exist.

He denied the impacts of the oil spill on the coast to the bitter end while looking for every opportunity to genuflect before whatever BP exec happened to be around last summer.

Now he’s back on the coast folks, a career politician announcing that he’s running for Governor.

In other news coast businessman Dave Dennis announced on his Facebook page he’ll be qualifying today for the Gov race too. What an interesting contrast the primary race will offer having a man who created jobs with a solid track record in the business community in Dennis against a career politician in Lawn Mower Fumes Bryant.

sop