CAS SO 323 Lecture Notes - Lecture 8: Life Settlement, Life Insurance, Secondary Market
18 Apr 2016
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03/14/2016 (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) c. Initially, companies bought insurance policies on the lives of their top managers ( insurable interest their death would be costly for the company) By the early 2000s, coli policies account for 25 to 30% of all life insurance sales. In 2006 a law passed to limit coli to highest paid 1/3 of workforce and to require workers" consent. Distortion of insurable interest principle, the foundation of life insurance. Care about the workers" well being and health. Even bigger problems when life insurance emerged in the us in the 19th. Zelizer: there no business like the life insurance business : initially stumbled on public resentment of measuring human life and death in monetary terms (sacred vs. profane) Compare to sandel: justice is not only about the right way to distribute things. It is also about the right way to value things.
