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- Title
THE CASE AGAINST INCREASING THE SAVINGS BANK LIFE INSURANCE POLICY LIMIT IN CONNECTICUT.
- Authors
Shulansky, Ralph M.
- Abstract
This article explains why increasing the policy limits of savings bank life insurance in Connecticut will be a competitive threat to insurance companies and underwriters. The controversy over the statutory policy limits of savings bank life insurance in the State of Connecticut predates even the enactment of the 1941 statute which authorized the establishment of savings bank life insurance in that State. Massachusetts and New York have enacted statutory measures for the sale of life insurance through mutual savings banks, and the arguments of the proponents of the legislation in Connecticut in 1967 are those which have been made almost since the inception of the savings bank life insurance scheme. They are as follows: (1) Increases in factory workers' average yearly wages since the enactment of the savings bank life insurance law in 1941 make necessary correlative increases in policy limits. (2) Limitations of any kind are violative of concepts of fair play and free competition. (3) Life insurance agents and their companies will not be harmed by increases in permitted policy limits since the amount of savings bank life insurance is small in comparison to that written by life insurance companies through underwriters and agents. (4) The public will be protected and safeguarded by a licensing provision incorporated as an adjunct to the current policy limit increase proposal which will require bank employees directly involved in the sale of insurance to pass a licensing examination prescribed by the Insurance Commissioner of Connecticut. (5) There is, in general, a substantial public benefit intrinsic in the sale of savings bank life insurance.
- Subjects
CONNECTICUT; MASSACHUSETTS; NEW York (State); SAVINGS bank life insurance; LIFE insurance; INSURANCE companies; SAVINGS banks; LEGISLATION; INDUSTRIAL workers
- Publication
Journal of Risk & Insurance, 1967, Vol 34, Issue 4, p628
- ISSN
0022-4367
- Publication type
Article
- DOI
10.2307/251431