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Author Topic: Dead Peasants Insurance.
The late Harry 20
The Red and the Green Stamps


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The Guardian has been running extracts from Michael Moores new book Dude Where's my Country over the last while, todays extract mentions Dead Peasants Insurance.

Here's some quotes

quote:
During the past 20 years, companies including Disney, Nestle, Procter & Gamble, Dow Chemical, JP Morgan Chase and Wal-Mart have been secretly taking out life insurance policies on their low- and mid-level employees and then naming themselves - the corporation - as the beneficiary!
quote:
And what does Corporate America privately call this special form of life insurance?

Dead Peasants Insurance.

Is there any truth to this? Have any of you ever herad of this before?

http://books.guardian.co.uk/extracts/story/0,6761,1057357,00.html

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wee wifey
Markdown, the Herald Angels Sing


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completely OT, but I love the adverts for this book, have you seen them- it's the guy from Dead Ringers as Dubya.

little miss "not now spot- Daddy's working"

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once known as little miss

"I don't Pretend to be an ordinary Housewife" Elizabeth Taylor

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wee wifey
Markdown, the Herald Angels Sing


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Oh, I also meant to make a real point- Most companies do take out life insurance on their employee's and it is paid to whoever the employee nominates upon the employee's death. I find it hard to beleive that these companies would have 2 life insurance policies on each employee- as that's just asking for a mix up if they had to cash in that insurance.

Also As this policy would cost them money, and most employees will not die, it seems a ridiculous expense for little "reward"

little miss

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once known as little miss

"I don't Pretend to be an ordinary Housewife" Elizabeth Taylor

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bblady
The Red and the Green Stamps


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Yes, it is true.
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wee wifey
Markdown, the Herald Angels Sing


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obviously an American thing- as I said over here the fact that most companies would be buying two sets of insurance would make it prohibitively expensive- although I am prepared to be proved wrong....again.

little miss

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once known as little miss

"I don't Pretend to be an ordinary Housewife" Elizabeth Taylor

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Elkhound
It Came Upon a Midnight Clearance


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There was an article about this in the Wall Street Journal a couple of years ago--sorry, can't provide specific cite. It said that some companies will even continue the insurance (w/the company as beneficiary) even after the employee has left. Apparently under certain circumstances the premia are low enough to justify it.

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Robigus, Frozen Mushroom
The First USA Noel


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Peasant-A-Chow
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Jay Temple
It Came Upon a Midnight Clearance


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This much I know: It is not legal to take out a policy on the life of someone 16 or over without that person's permission.

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"Well, it looks we're on our own ... again."--Rev. Lovejoy

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OhTheHorror
The Red and the Green Stamps


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Let me set you all straight. All you need to take out a life insurance policy on someone is an insurable interest in that person’s life. Companies frequently take out Key-Man insurance on their top executives to hedge the impact on company should the person die.

You do not need anyone’s permission to buy insurance on their life. If the company deems that no insurable interest is in place they won’t sell the policy.

Companies can and do buy this so called peasants insurance. It was actually proved that Circle K spent little to no money on increasing the security at their stores, instead cashing in after they got popped during a hold up. Wal-Mart only stopped if the their use of this type of policy was disclosed on one of the television new journals (20-20 if memory serves).

The protection for the consumer lies in the fact that a company can’t sell a policy without an insurable interest being involved as this may entice the less upstanding among us to kill someone to collect the proceeds of the policy (which you wouldn’t get anyway).

Companies are not required to disclose that they have insurance on you with themselves as the beneficiary.

I am the Controller for one of the larger American Insurance carriers and have worked in this industry for two decades.

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Finite Fourier Alchemy
Markdown, the Herald Angels Sing


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quote:
Originally posted by OhTheHorror:
Companies can and do buy this so called peasants insurance. It was actually proved that Circle K spent little to no money on increasing the security at their stores, instead cashing in after they got popped during a hold up.

I'm not a lawyer, but isn't this premeditated murder? Or at very least, conspiracy? You can't buy a life insurance on someone and then try to kill him, even if it's done in a roundabout way.

Couldn't a conflict of interest issue come up that might invalidate the contract?

Alchemy

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Thinking about New England / missing old Japan

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pinqy
Ding Dong! Merrily on High Definition TV


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There's nothing new under the sun. This practice was the central plot of Mertvie Dushi (Dead Souls) by Nikolai Gogol, written in 1842. Gogol's "hero," Chichikov concocts the scheme to buy serfs who had died since the last census, but who are still on the books as belonging to the landowner. He would then take out a mortgage on these serfs and also claim a tax break and get government compensation after the next census when he could declare the deaths of his serfs.

My guess is that the term "dead peasant insurance" comes from this book.

pinqy

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Tags973
The Red and the Green Stamps


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It may be grounds for a wrongful death suit, but then again they'd probably just settle with the insurance money...

Premeditated murder wouldn't stand a chance though. Neglient homicide might be closer, but then again I'm no lawyer either.

Had a good luagh at www.walmartsurvivor.com though. My goodness I didn't know about all the falling merchandise that is terrorizing the nation! I feel lucky to not have had any employees drop stuff on me. I wonder if my luck would change if they knew I hated the place...

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