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Could it happen here? The regulators' response to scandals in the mutual fund and insurance brokerage industries may hold some harsh lessons for life insurers.

Publication: Best's Review
Publication Date: 01-JAN-05
Format: Online - approximately 697 words
Delivery: Immediate Online Access

Article Excerpt
As the scandals that rocked the mutual fund industry came to light over the past year and a half, life insurance companies largely managed to stay above the fray. They watched from the sidelines as revelations of trading abuses by highly regarded fund complexes spurred regulators to put in place a raft of reforms designed to protect investors and ensure that such misdoings could never recur.

Now the stakes for life insurers have been raised by New York state Attorney General Eliot Spitzer's investigation of property/casualty brokers and insurers. The allegations have a familiar ring--biased customer advice, based on distributor and manufacturer interests,...

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