Monday, April 19, 2010

Your insurer is regulated by assholes

So when my insurance co. is faced with claims for my home, or those of my neighbors, what if it doesn't have the money?

Which, according to the Herald Tribune, is likely to be the case. The fine story by Paige St. John says:

Eager to replace national carriers fleeing the state and to reduce government-sponsored coverage, regulators have bet Florida's future on companies they know are shaky. They allowed at least four insurers on the verge of failure to write policies through most of 2009, the Herald-Tribune found.

If my insurer goes broke, will it mortgage its headquarters, auction its desks and cars and jets and fax machines, to come up with the cash for its customers to repair their homes?

If not, they should not be in business. Indeed, they should be in jail.

Why are insurance companies, which essentially are ponzi-style bank schemes, not re-organized to represent the people whose needs they are supposed to be serving?