Hollywood and the insurance industry continue to trade blows as celebrities attack companies' business practices.
Hollywood and the insurance industry continue to trade blows as celebrities attack companies' business practices.
The most recent tussle was between Michael Moore and a triumvirate of trade associations: the American Council of Life Insurers, the Association for Advanced Life Underwriting and the National Association of Insurance and Financial Advisors.
In his most recent documentary film, “Capitalism: A Love Story,” he looks at the use of corporate-owned life insurance, which generally involves companies' owning a policy on key personnel.
Mr. Moore asserts that companies' purchase of life policies on non-essential workers is a common practice.
However, in an Oct. 6 letter, the three associations leapt to the defense of the use of such insurance, which companies can use to help foot the costs of employee benefits.
“Mr. Moore's assertions on COLI and subsequent media reports mischaracterize the truth about these insurance policies,” the three groups said in their letter.
They pointed out that companies with these arrangements must have a clear insurable interest in the lives of the insured people.
Mr. Moore's criticism of corporate-owned life insurance follows on the heels of another Hollywood volley against insurers, a video sponsored by MoveOn.org criticizing the health insurance industry and in support of the public health care option.
The faux public service announcement, “Protect the Insurance Companies,” stars Will Ferrell and claims that “insurance companies need our support because they keep our selfish priorities in check.”
America's Health Insurance Plans, a major health insurance trade association, didn't return calls seeking comment about the video.
