Posted on 05/31/2006 8:09:54 PM PDT by paulat
Your argument was overwhelming with facts and persuasive rhetoric.
Not!
The State Board of Insurance dictates the rates to be charged, not the insurance companies.
Insurors do not make their profits by taking in more dollars in premium than they pay out as claims. Indeed, they frequently pay out more.
Insurors make their profits from the dividends of wisely investing those premium dollars until they are paid back out as claims.
You could always bump up the premiums of others who have less risk..
Again, it is the government that sets rates, not the insurors. They are prohibited by law from just 'bumping up the premiums'.
You don't know what insurance is, or how it works. Armed only with ignorance and anger, you insult and malign your neighbors....fellow Americans. How novel.
--- The State Board of Insurance dictates the rates to be charged, not the insurance companies. ----
You must be talking about a specific kind of insurance.
I recently purchased business insurance and had to undergo a rectal (figuratively speaking) exam for the underwriter to assess the exposure/risk that I would have and therefore they could set the rates.
Why would they bother to assess risk if the rates are set by the insurance commissioner?
--- You don't know what insurance is, or how it works. Armed only with ignorance and anger, you insult and malign your neighbors....fellow Americans. How novel. ----
Seems like I touched a nerve. Its not like I was insulting insurance salesmen and comparing them to used car salesmen...
I know a few insurance salesmen and I would never insult a used car dealer like that!
Hey, all you Wash state Freepers- welcome to Florida! haha
I am...those types written by Allstate(ie: homeowners, personal auto, small business, etc...)
Why would they bother to assess risk if the rates are set by the insurance commissioner?
A seventeen year old boy poses a much greater auto risk than a 43 year old woman driving the same car. The state sets the rate for that car, as well as the rate modifier that addresses the greater risk of the boy.
Every single word, period, comma, font size, font color, form number, rate, and premium is dictated by the state.
Every time you hear some state politician bad mouthing insurance coverages or premiums; they are knowingly blaming others for that which they have done themselves.
The politicians do this often as they know most of the sheeple will dutifully hate insurors as instructed.
The socialization of risk?
You could always bump up the premiums of others who have less risk but then, that is called socialism.
So you would like to get in an accident with an un-insured motorist? Or watch your un-insured home go down in flames?
I don't think you understand insurance. It is merely the transfering of risk for a fee. Granted, many insurance agents are slime. Still love the insurance agent scene in "Groundhog Day" when Bill Murray clocks the guy.
Allstate...only offering insurance for risks that don't exist in your area of coverage.
They don't mind making money off the premiums and subsequent investments, but they sure hate paying claims even though they are built into the rating schemes.
There are few industries that are more heavily regulated than insurance. But you know that.
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