Chief of La. Citizens Urges Lawmakers to Have Patience

November 2, 2006

  • November 2, 2006 at 3:25 am
    gak says:
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    All insurance companies including Citizens need to be allowed to set actuarially sound rates year in and year out. If and when a huge surplus develops, it should be left alone. There should be no cries about obscene profits. Then, when major events occur there is enough to pay for them. Yet, the citizenry and politicians view rates in the short term to the detriment of all. There is carping when profit (which truly is policyholder surplus) is seen as high and also complaining when there is a shortfall because some regulator did not allow proper rating.
    There certainly needs to be oversight, but the insurance mechanism should be allowed to operate naturally and properly. Otherwise, this is what results and then people who should not have to must additionally subsidize people who cannot get insurance other than through a pool like Citizens.



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