government tontines played an important role in government finances over
After the Civil War, tontines emerged as a popular investment for
the enactment of legislation in 1906 that all but banned tontines, and
We believe that the time has come to revive tontines as a way of
When early 20th century reformers sought to pacify the powerful mutual life insurance companies that profited from tontine life insurance, they used all the rhetorical tools at their disposal--including the conceptual link between tontines and gambling.
LEGALITY We have identified three potential legal concerns about insurance tontines, none of which would apply to a properly designed health tontine.
Second, New York and many other states passed legislation immediately after the 190S Armstrong investigation that prohibited life insurance tontines.
In our judgment, those laws would not apply to health tontines any more than similar laws would have applied to life insurance tontines.
See generally Kent McKeever, A Short History of Tontines, 15 FORDHAM J.
COOPER, supra note 9, at 2-9 (tracing the early history of tontines in France, England, and the United States).
at 10-17, 21-22 (discussing the rise of tontines in the United States, the defects inherent in the original tontine policies, and the abuses of the system that led to their demise); McKeever, supra note 9, at 507-11 (detailing the nineteenth century beginnings of tontine-like insurance policies in the United States and the legislative backlash to tontines).
14) See COOPER, supra note 9, at 43-57 (discussing the findings of the Armstrong Committee, a committee created by the New York legislature to investigate the life insurance business, which led to legislation virtually banning tontine policies by forbidding insurance companies from deferring dividend payments beyond one year); see also Tom Baker & Peter Siegelman, Tontines for the Young Invisibles, REGULATION, Winter 2009-2010, at 26, available at http://object.