1973-1974 – GOV (Senate) – The Life Insurance Industry – Phillip Hart (D-MI)

  • 3 E. J. Moorhead, “The Hart Hearings in Perspective,” Best’s Review, January, 1974, p. 16:
    • “First is the massive ignorance of policyholders about their life insurance.
    • It is hard to believe that people know as little about their life insurance property as the surveys show.”
  • 4 Ibid.. p. 70. Mr. Moorhead points to five probable thrusts of the Hart hearings:
    • (1) price and quality of our products,
    • (2) freedom of the agent,
    • (3) sales practices,
    • (4) sales interference, and
    • (5) efficiency of state regulation.

1974 – SOA – Consumerism and the Compensation of the Life Insurance Agent, Anna Maria Rappaport – 68p

Part 1

  • Armstrong Report – Armstrong Investigation
  • TNEC – Temporary National Economic Committee
    • 1938-1941 – GOV (Senate) – TNEC – Temporary National Economic Committee, Joseph C. O’Mahoney (D-WY)  —  [BonkNote]
    • 1941 – GOV (Senate) – TNEC – Final Report and Recommendations of the Temporary National Economic Committee, Investigation of Concentration of Economic Power – 464p
  • (p113-175) – Understanding your Life Insurance, Institute of Life Insurance

  • The Widows Study – LUTC and LIAMA

    • (p313-391) – The Onset Of Widowhood, vol. 1 

    • (p392-508) – Adjustment to Widowhood, vol. 2

  • (p566-610) – Statement of Joseph Belth
    • p599 – Table 3 – Annual Information
  • (p720-748)  –  Joint Special Committee on Life Insurance Costs  —  [BonkNote]  —  29p 
    • Cost Comparison Methods Table
  • (p749-759) – Speech of E.J. Moorehead, 1970/11/09
  • (p1) – Senator Philip Hart – (D-MI) – …..American consumers pay a bill without having more than a somewhat vague idea of what they are buying.
    • If this were the result of flimflam, enforcement agencies would have been all over the sellers years ago.
      • But this is not intentional flimflam it is as the man in “Fiddler on the Roof” explained away so many things- “tradition.”
    • These 140 million consumers, at an outlay of about $23 billion a year, are buying life insurance policies.  

Part 2 

  • (p117-120) Exhibit Il which shows that, in the last fifty years, no less than 21 different attempts have been made to solve this problem.. insurance departments.
  • Furthermore, enacting a federal statute on life insurance cost disclosure would only address itself to part of the problem.

1973-2, NAIC Proceedings, (p107-131)

—  Statement of Stanley C. DuRose, Jr. – Commissioner of Insurance – Wisconsin / NAIC

  • (p993) –  Life Insurance “Cost,” “Price.” and “Value” – Presentation
  • (p1020) – NAIC Proposed Report of the Life Insurance Cost Comparisons and Price Disclosure
  • (p899) 1960 – The Construction of Persistency Tables, by Ernest J. Moorehead (EJM), Society of Actuaries
  • Interest Adjusted Method (IAM)
  • Hruska, John Durkin, New Hampshire Insurance Commissoner
  • 1973-2,  NAIC Proceedings – GOV (Senate) – NAIC – Testimony Stanley DuRose (Wisconsin Insurance Commissioner / NAIC) – p107-131 – 25p
  • 1973 0221/ 1972 0221 – GOV (Senate) – The Life Insurance Industry – NAIC – Stanley Durose (Insurance Commissioner – WI), (Typo -1973, not 1972) – TILI, Senator Philip Hart (D-MI) – 64p
  • 1973 0221 / 1972 0221 – GOV (Senate) – The Life Insurance Industry – NAIC – Stanley Durose (Insurance Commissioner – WI), (Typo -1973, not 1972) – TILI – 56p

Part 3

  • Pennsylvania Life Insurance Shopper’s Guide – Denenberg
  • John C. Bogle
  • (p1818) – Consumers Union
1973-GOV-Life-Insurance-Hart-Opening-1-of-4-p1
  • (p17) – Federal interest in disclosure has extended into the automobile business (price stickers in windows), lending (truth-in-lending laws), drugs (truth in labeling), etc.
  • Such things can be stated with certainty, e.g. the price of an automobile or accessories, the rate of interest being charged on a loan, or the amount of certain ingredients in drugs.
  • ⇒  But, we have seen that a life insurance cost illustration is different.
    • No one knows or can predict with certainty what the results will be.
    • We have seen that refining the illustration for that is what the various proposals over the years have undertaken to do — cannot add to their certainty. 

1973 0221/ 1972 0221 – GOV (Senate) – The Life Insurance Industry – NAIC – Stanley Durose (Insurance Commissioner – WI), (Typo -1973, not 1972) – TILI – Truth in Life Insurance,  Phillip Hart (D-MI)  – 64p

1973 -The_Life_Insurance_Industry Illustraton 1 of 4 p599 1973-GOV-The-Life-Insurance-Industry-2-of-4-Nader-Pennsylvania-Regulators-Nobody-Agrees 2 of 4-p912 1973-GOV-The-Life-Insurance-Industry-2-of-4-Table-Cost-Comparison-Methods-1-of-p930 1973-GOV-The-Life-Insurance-Industry-2-of-4-Table-Cost-Comparison-Methods-2-of-5-p931. 1973-GOV-The-Life-Insurance-Industry-2-of-4-Table-Cost-Comparison-Methods-3-of-5-p932 1973-GOV-The-Life-Insurance-Industry-2-of-4-Table-Cost-Comparison-Methods-4-of-5-p933 1973-GOV-The-Life-Insurance-Industry-2-of-4-Table-Cost-Comparison-Methods-5-of-5-p934