“The customer is always right” is one of those all too familiar household phrases that is ingrained in the minds of most Americans. The holiday shopping season is one of those rare occasions of the year when we tend to remember it. What we seldom consider about this slogan is that it is the fundamental law of the market.
Divisible Surplus. What is it? Where does it come from? Why is it so relevant in the structure of a mutual life insurance company? Who determines when and how it is to be divided? Even more importantly, how do the insurer, the government regulator, the agent and the policy owner see, or how should they see, its importance from their particular points of view?