The Next Big Bailout Decision: Insurers

A dozen life insurers have pending applications for aid from the government's $700 billion Troubled Asset Relief Program, and the industry is expecting an answer to its request for a bank-style bailout in the coming weeks. The government so far hasn't said whether insurers will be eligible for the program.

Of course there will be aid. The government has already proven it is willing to rescue insurance by bailing out derivatives-laden AIG and the big banks. Why not insurance of the traditional sense? The government has not yet felt any pain whatsoever from its bailout spending, so why would it stop now?