Here\’s a little Econ 101 – you can\’t spend on jury awards and legal costs more than you take in in premiums and investment income and remain solvent. Simply reducing the ability to charge adequate premiums without solving the claims side of the equation is useless. Insurers will find ways to get themselves out of your state, or they will go bankrupt.
If the problem is greed by insurers, why are all of the Risk Retention groups in troubled states, in just as much difficulty? They don\’t have a profit motive, so greed can\’t be the factor there…
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It\’s the insurance companies that are at fault. Yeah.
After all, these huge multi national companies are only after the almighty dollar right?
Here\’s a little Econ 101 – you can\’t spend on jury awards and legal costs more than you take in in premiums and investment income and remain solvent. Simply reducing the ability to charge adequate premiums without solving the claims side of the equation is useless. Insurers will find ways to get themselves out of your state, or they will go bankrupt.
If the problem is greed by insurers, why are all of the Risk Retention groups in troubled states, in just as much difficulty? They don\’t have a profit motive, so greed can\’t be the factor there…