This is a carefully researched book by historian Dan Bouk, who examines how America came to terms with becoming simply numbers in a ledger. This change, however, took place voluntarily as a result of people attempting to reduce the risks of life through the purchase of insurance. The story begins after the Panic of 1873 and stretches through the Great Depression, although there is a concluding chapter briefly covering current issues. This review will provide a summary of the book, with greater emphasis on those chapters most relevant to forensic economists. However, it will be helpful to first briefly review some basics of life insurance.
Life insurance is a financial arrangement that transfers risk from the insured to a risk pool administered by an insurer. The risk pool should have several characteristics. First, the units should be relatively homogeneous. The idea that each person should be charged the same rate...