As Digby noted, this is the same scheme we saw from Walmart that Michael Moore featured in his movie, Capitalism: A Love Story. Apparently Texas Gov. Rick Perry thought selling "dead peasants insurance" was something he could con the states retired teachers into as well so Wall Street could profit from their deaths.

Here's more from the HuffPo -- Rick Perry Sought State Profits From Teacher Life Insurance Scheme:

Two weeks before Thanksgiving in 2003, top officials from Texas Governor Rick Perry's office pitched an unusual offer to the state's retired teachers: Let's get into the death business.

Perry's budget director, Mike Morrissey, laid out a pitch that was both ambitious and risky, according to notes summarizing the meeting provided to The Huffington Post.

According to the notes, which were authenticated by a meeting participant, the Perry administration wanted to help Wall Street investors gamble on how long retired Texas teachers would live. Perry was promising the state big money in exchange for helping Swiss banking giant UBS set up a business of teacher death speculation.

All they had to do was convince retirees to let UBS buy life insurance policies on them. When the retirees died, those policies would pay out benefits to Wall Street speculators, and the state, supposedly, would get paid for arranging the bets. The families of the deceased former teachers would get nothing.

The meeting notes offer the most direct evidence that the Perry administration was not only intimately involved with the insurance scheme, but a leading driver of the plan.

It was a back-room deal at odds with Perry's public persona as a career politician who had successfully sold Texans on his vision of minimal government intrusion. And it still is. Nearly eight years after the meeting, when Perry formally announced his run for the presidency in Charleston, S.C., he honed that vision into the perfect applause line: "I'll promise you this," he had said in his West Texas drawl. "I'll work every day to try to make Washington, D.C. as inconsequential in your life as I can." Read on...

I guess Perry doesn't mind that "big government" interfering in your life if it means they can make a profit from your death.

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Bill Maher talks to Michael Moore about his movie, Capitalism a Love Story not being nominated for the Oscars this year, the lack of any regulation being passed since we bailed out the banks and health care reform.

(Warning, slightly nsfw.)

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From ABC News: Are 'Dead Peasant' Life Insurance Policies Fair?. The anchors were "stunned" to find that this is going on after watching Michael Moore's new movie, Capitalism a Love Story. Maybe Claire Shipman wouldn't be so surprised if they weren't using a documentary film maker as their research department.

Life insurance used to be rather straightforward, known for offering security to loved ones in a tough time.

So when Irma Johnson learned that her husband, Daniel, who died of brain cancer, had been insured for $1.5 million, it should have been at least a small comfort.

But she did not receive the money. His employer did.

It's one of the strangest free-market perversions that Michael Moore highlights in his latest film, "Capitalism: A Love Story."

In the corporate practice dubbed "Dead Peasants" life insurance, companies wager on employees' lives, expecting to make money when they die.

And it's pervasive, said Mike Myers, an attorney who has uncovered many of these cases and helped angry relatives sue.

"Life insurance is traditionally used to guard against the death of breadwinners. This is an investment scheme," he said.

Dozens of blue chip companies have these policies, according to Myers. But only banks are forced to reveal them, and several have billions of dollars worth of policies.

"The driving force behind it is the tax deductions," he said.

The life insurance policies were designed to allow companies to insure a few crucial executives. Savvy companies then realized they could also get a tax break by insuring many lower-level employees.

The financial scheme doesn't actually cost the employees anything, except, some say, their trust.

Betina Tillman felt shocked and deceived when a reporter from The Wall Street Journal told her that her brother, a music store cashier, was insured by his employer for $339,000 when he died, despite the fact that he no longer worked at the store.

"We were just in disbelief they were able to do it, and actually cash the policy and cash in on the policy," Tillman said.

She sued, and won. Now, the government mandates that companies obtain the consent of employees.

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Michael Moore joined the set of the Larry King Live for the full hour. Here's part of the first segment where Michael talks about how much richer the upper one percent have gotten, how much Wall Street loves corporate welfare when they get into trouble and why Wall Street and large corporations are happy when they lay off workers in the United States.

KING: Are you saying capitalism is a failure?

MOORE: Yes. Capitalism. Yes. Well, I don't have to say it. Capitalism, in the last year, has proven that it's failed. All the basic tenets of what we've talked about the free market, about free enterprise and competition just completely fell apart. As soon as they lost, essentially, our money, they came running to the federal government for a bailout -- for welfare, for socialism. And it -- it -- I thought the basic principle of capitalism was that it's about a -- it's a sink or swim situation. And those who do well, the cream rises to the top and, you know, those who invest their money wrongly or, you know, don't run their business the right way, then they don't do well.

And if you run your business the wrong way, where does it say that you or I or anybody watching this has to bail them out?

I understand -- I understand why everybody seemed to get behind it, because a lot of people were afraid, because these people down on Wall Street had taken our money and made bets with it. I mean, they essentially created this invisible virtual casino with people's money -- people's pension funds, people's 401(k)s. They took this money and they made bets. And then they made bets on the bets. And then they took out insurance policies on the bets. And then they took out insurance against the insurance -- the credit default swaps.

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Larry King Live has a sneak peak at the premier of Michael Moore's new movie, Capitalism: A Love Story.