In the early 20th century, public outrage over certain practices of life insurance has led to the investigation of the state of New York, which threatened to reduce the growth in the industry. Charles Evans Hughes guided the four-month study of Armstrong, who made a startling revelation, and proposed a number of controversial recommendations, some of which will ban the most popular type of life insurance (insurance tontine), limit the growth of life insurers (which includes some of the largest financial institutions in the country the time), and to prevent insurance companies from owning shares of other companies. New York state legislature approved all of the recommended measures, and sent the bill to the governor for his signature. Life insurance industry objected, however, claim that some of the new rules would reduce consumer choice and unnecessarily low return on investment of the company. "Hide
by Eugene Kintgen, David A. Moss Source: Harvard Business School 29 pages. Publication Date: January 2, 2008. Prod. #: 708034-PDF-ENG
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