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View Poll Results: Should there be any limits on how large a profit Insurance companies can make?
No, they should be allowed to make as much as they can 55 60.44%
Yes, there should be some limits 18 19.78%
Yes, there should be strict limits 17 18.68%
Dunno, but I like to vote!!! 1 1.10%
Voters: 91. You may not vote on this poll

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Old 10-06-2011, 11:42 AM
 
77,920 posts, read 60,091,609 times
Reputation: 49290

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Quote:
Originally Posted by Roadking2003 View Post
Correct! The fix? Get government out of the insurance business. Then let a free market control prices.
The state of PA lost about 2 billion forming a pool for medical malpractice insurance in the state back 20 years or so ago.

Doctors got huge rate cuts, then everything fell apart and prices spiked back up....lots of market disruption and the taxpayers got to help bail out the whole thing.

Florida right now is sitting on a $30billion timebomb call Citizens insurance which sells homeowners insurance at inadequate rates. If they were a private insurer they'd be shut down from operation due to their rates and lack of money to pay claims if hurricanes come rolling in.

It's not an if, it's a when.

Currently, all the FL residents are subsidizing the homeowners insurance costs of people living close to the coast in the south end of the state. When the crap hits the fan they will try to get a fed bailout and make the rest of us subsidize it too.

In general, you are right...government meddling in insurance has generally met with disaster. (Look at the flood insurance plan they are finally getting around to fixing....but I digress.)
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Old 10-06-2011, 11:48 AM
 
10,545 posts, read 13,552,905 times
Reputation: 2823
Quote:
Originally Posted by crystalblue View Post
Consumer group rips insurance industry - Consumer news - MSNBC.com

or should they be allowed to make as much as possible?
So when they make all the profit they can make they'll refuse to accept any new customers. Those customers are then forced to go to a less successful company - the one the other customers chose not to pursue.
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Old 10-07-2011, 08:24 AM
 
77,920 posts, read 60,091,609 times
Reputation: 49290
One more example of what often happens when a state gets too involved in trying to run it's own insurance company and manipulate the markets.

Regulators scrutinize State Fund - San Francisco Business Times

CA has a state fund that is the largest provider of workers' compensation in the state. It's a trainwreck of mismanagement, insider deals, bad service.....if they were a private company they'd have been shut down and fined to death a long time ago.
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