Life insurance companies Have ratings - Do you just go to any company with the best price? why should consumers not have to do some due diligence when they go to a bank? Banks have ratings too - I don't see why a consumer cant be required to look out for bank ratings..
Wasn't 2008 enough to prove how trustworthy those rating agencies are?
What life insurance companies have that banks don't have is tougher regulation, capital and reserve requirements (especially in NY). Also true mutual companies (not hybrid Mutual Holding Companies - which IMHO should have never been allowed) are usually inherently stronger than even NY (the most stringent of) State laws require.