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To: Lonesome in Massachussets

Auto insurance (which I know is heavily restricted) but also home insurance? Are you sure?


71 posted on 12/08/2006 7:33:52 AM PST by HostileTerritory
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To: HostileTerritory
Auto insurance (which I know is heavily restricted) but also home insurance?

Every word, comma, font size, font color, coverage provided, exclusion, form number, page number, definition, and rate charged on a homeowners insurance policy is dictated by the government.

85 posted on 12/08/2006 7:48:08 AM PST by laotzu
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To: HostileTerritory
I don't know anything about the details of the New Jersey market. I'm sure that All State would gladly sell any policy that they think they'll make money on.

In the PRM, anyone writing insurance had to offer auto insurance on terms dictated by state regulators. All State said adios around 1990, because they were losing too much money on auto insurance and they've never come back. I remember video of two All State execs marching up the Statehouse steps to surrender the company's insurance license. (The commissioner of Insurance was still making empty threats...)

Every state regulates insurance, at a minimum to assure the financial integrity of insurers. It's unlikely that anyone is "buying in" to the New Jersey homeowners market by taking a loss to drive out competitors, so I assume that All State decided, for whatever reason, that they could not make money there. Occam makes me suspect regulators.

94 posted on 12/08/2006 8:07:36 AM PST by Lonesome in Massachussets (The hallmark of a crackpot conspiracy theory is that it expands to include countervailing evidence.)
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