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The insurance industry is split down the middle over whether to accept funds from the $700 billion federal bailout program, with life insurers intrigued by the idea, but property-casualty carriers firmly responding, “thanks, but no thanks.”

However, industry officials and observers say the difference within the business between life and p-c insurers over accepting financing directly from Washington will not lead to a rift on broader issues of mutual interest as the two sides work with a new administration and Congress next year.

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