Posted On: May 23, 2006, 2:53 pm CDT

Posted By: John

Actuarially speaking, ordering an across the board 5% rate reduction doesn't make sense. Not each policy is of equal risk because of risks associated with individual coverages and because of geographical location. It's a nice policy move and gets good press, but it's not sound in logic.

Also, why credit interest at such a high rate?? If indeed the Company did "overcharge" it's policyholders, that high of an interest rate cannot be supported. The Company did not earn anywhere near that rate of return on its investments, and neither would any of the policyholders. Credit interest, ok. But it should be somewhere in the 4/5/6% range, which is what the policyholders MAYBE could have earned if they'd held onto their money.