In response to:

Risky Business

TheBucko Wrote: Aug 28, 2012 5:09 PM
A pre-existing condition seems to be something you cannot buy "insurance" for. Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. A pre-existing condition is a risk with extant causes that is not readily compensated by standard, affordable insurance premiums. Pre-existing condition exclusions by the insurance industry are meant to cope with adverse selection by potential customers. Only politicians would let you by "insurance" for a pre-existing condition.
Polly1 Wrote: Aug 28, 2012 7:03 PM
I totally don't understand why I can't buy auto insurance immediately after my accident and homeowner's insurance immediately after my house burns down.

What a waste of money to carry insurance for years and years and never use it. (Though in actuality, the less I use my insurance, the happier I am. Go figure.)
rightmostofthetime Wrote: Aug 28, 2012 8:15 PM
NOW you're thinking like a lib, Polly!
GER-76 Wrote: Aug 28, 2012 5:37 PM
What you say is absolutely true. It is mind-boggling that this is not understood by people and general the legislature in particular. It is gross pandering by politicians and greed by people who support it.

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...