ustxtxb_obs_1980_07_25_50_00011-00000_000.pdf

SELECT COMMITTEE NEWS ON AGING U.S. HOUSE OF REPRESENTATIVES CLAUDE PEPPER, Florida, Chairman SubaxtunMee No. 1Retirement Income and Employment JOHN L IORTON, Carends, Minus WILLIAM C. I/AMU& 4100N. bait Ws01 NINON , Subcommittee No. 2Health and Lonerm Care CLAMOR PURER, Florida, etakins JAMES ABONOR, SAO Mak WAN Wag* Muer SobcommIllse No. 3ijousing and Consumer Interests MAN IL ROYSAL. Climb. Minns 101411 PAUL HAMMERSCHMIDT. ktaitsn, Itaakitat Minority Maribor Subcommittee No. 4Human Services MARIO BIAGGI, NA Tart. Clithua CHARM E. GRAMM. lawn, Riskin Minority /babe ROOM 712, HOUSE OFFICE BUILDING ANNEX 1 300 NEW JERSEY AVENUE SE. WASHINGTON, D.C. 20515 Charles Edwards Val Halamandaris Yosef Riemer FOR IMMEDIATE RELEASE, SUNDAY, JUNE 8, 1980 PEPPER RECOGNIZES AMERICAN INCOME LIFE INSURANCE COMPANY FOR HALTING SALES OF CANCER INSURANCE POLICIES Washington -Congressman Claude Pepper, Chairman of the House Select Committee on Aging, which recently published a report highly critical of cancer insurance, today commended American Income Life Insurance Company of Waco, Texas for its decision to phase out its cancer insurance sales within the next 60 days. “I wish to commend American Income for its forthright action,” said Chairman Pepper. “If every American company acted responsibly there would be little need for regulation at either the State of Federal level.” In its recent report, “Cancer Insurance: Exploiting Fear for Profit,” the House Committee on Aging generically criticized cancer insurance. Without singling out American Income or any other company, the report charged that cancer insurance policies have very limited economic value, typically returning less than 50 cents on the premium dollar to the insured in the form of claims. Chairman Pepper noted that since American Income’s policy had a higher loss ratio, the company’s leadership in leaving the cancer insurance field was all the more significant. The Committee also charged that some companies use scare tactics to sell insurance and that senior citizens were the prime victims of these practices. The Committee recommended that states examine their insurance laws with an eye to joining six states \(Connecticut, Massachusetts, Missouri, closely. “It is clear to me that American Income has voluntarily implemented reforms suggested by State insurance commissioners and by the Congress. I do not know what more you could ask of this or any other company,” said Pepper. “It is evident the company felt that cancer insurance sales which constituted less than 3 percent of its business were detracting from its excellent reputation. This action is evidence of how far this company will go to preserve its good name.” Chairman Pepper credited American Income’s Chairman of the Board and Chief Executive Officer, Bernard Rapoport, for this decision. “I have known Mr. Rapoport for some time. He is highly regarded in Washington. This is just the kind of action that he is known for. He deserves great praise for this courageous action.” Bernard Rapoport, Chairman of the Board P.O. Box 208, Waco, Texas 76703 American Income Life Insurance Company THE TEXAS OBSERVER 11