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Abstract

From time to time during the last hundred years or more, there have been discussions concerning the control or the lack of control by policyholders of mutual life insurance companies. While this is certainly not a new issue, there have been several recent developments. One recent development is a so-called "class action" suit brought in October 1972 against four large mutual life insurance companies in the United States District Court for the Southern District of New York. This antitrust suit was brought on behalf of three policyholders as representatives of a class consisting of all mutual life insurance policyholders. The complaint alleges, among other things, a conspiracy among defendant insurance companies to use outdated and antiquated mortality tables, to charge unreasonably high and redundant premium rates, and to create self-perpetuating management.

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