In response to:

Risky Business

chris2606 Wrote: Aug 28, 2012 3:19 PM
IF an insurance co. would falter, there are always (at least in the past) Ins companies willing to step in and buy the failing co. Why, because it is a ready-made supply of customers. Of course, the reasons for failure are still there and the new company will have to : cut staff, raise rates, etc., etc. Basic safeguards to the existing customers will allow for the new company to pick-up where the failed company left off. One of the biggest problem is , as Dr Sowell was saying, differences in state regs . Why try to work in a state that seems to want Ins companies to fail.

Insurance is all about risk. Yet neither insurance companies nor their policy-holders can do anything about one of the biggest risks -- namely, interference by politicians, to turn insurance into something other than a device to deal with risk.

By passing laws to force insurance companies to cover things that have nothing to do with risk, politicians force up the cost of insurance.

Annual checkups, for example, are known in advance to take place once a year. Foreseeable events are not a risk. Annual checkups are no cheaper when they are covered by an insurance policy. On...