The ruling coalition is ready to endorse a controversial draft bill that would allow troubled life insurance companies to reduce payouts promised to policyholders, the Liberal Democratic Party said Thursday.
Opposition politicians are calling the new legislation "the world's first state-backed breach of contract."
The approval paves the way for the bill to pass through the Diet as early as June. The government plans to submit an amendment to the Insurance Business Law to the Diet by the end of this month.