Unfortunately, no-fault is one of those ideas that sounds great in theory but has not worked out in practice. From everything I’ve read on it, every state went to it expecting to cut insurance costs for the consumers. It didn’t work out over time, so some states have gone back to the previous system.
The no-fault states also have some of the highest premiums in the country.
I hope you didn’t miss the 6/19/07 article in IJ that State Farm has cut its rates 9 times in CO since we repealed no-fault. The most recent cut was 7.2% and will save CO consumers $38MM annually. This cut brings the total reduction to 40% since the repeal on 7/1/03. This means that auto insurance has become much more affordable and more people can afford to buy the mandatory coverage. Sadly, no-fault created more litigation not less due to its mandate and complexity. Now, more money pays claims and less is wasted on administrative expense. Yes the health providers squawked long and hard, but the important ones are all doing very well. We will be shipping a few “surplus” chiros to FL. Of course, this means less commission, so producers oppose regardless of the merits.
1.What profit motive is influencing Ins Comp to want PIP sunsetted?
Answr: The major companies like State Farm, Allstate,etc are pulling homeowners policies of FL so they are left w/auto as their major profit areas. They can’t manage denials on PIP as easily as other coverages so they want to eliminate it to MAKE money, not out of altruism for their customers.
2.What have Ins companies done to stem the tide of PIP fraud in FL in the last decade?
Answr: Hardly anything. The activity of understaffed SIU units in FL has been concentrated on property/workers comp fraud. PIP fraud has gotten token handling and what they have done has involved moronic litigation.(See State Farm’s litigation vs Florida Hospital)
3. What are the insurance companies doing to ensure that their customers in Fl at least can depend on at fault motorists to have adequate BI and PD coverage?
Answr: Nothing. Their silence on this issue clearly demonstrates that they want to ignore the fact that a HUGE percentage of FL drivers(especially new residents) have NO INSURANCE coverage at all! IS this an exaggeration? Talk to someone in Miami, Orlando, etc…
4.Who do the insurance companies want to insure?
Answr: Ideally, they want white, upper middle class people who never make claims. This group will pay out of pocket before making a claim that might raise rates-they can afford to! Since they can’t exclude everyone else, they are subtly pushing to allow these “others” to go without mandatory insurance. You would think that they would want EVRYONE forced to buy insurance, but in today’s ins world the companies make as much money off of unspent premium dollar as they do off of investments. This is a recent trend, as in decades past ins companies might spend $1.05+ on every $1 taken in premium and STILL make a profit. Today, the greed of these companies is incredible, and they all shoot for spending 80 cents on each dollar taken in premium. Greed seems to drive ALL business actions when it comes to insurance in FL…
5.What about the rate decreases they talk about?
Answr: For the first year there will be decreases. By the second year, when the Ins Comp have to pay out on UM and see longer pending on BI cases they will pass these costs onto the customers.
6.Didn’t Colorado see huge savings after PIP went away?
Answr: CO and FL are VERY different markets. When did you last see a headline that companies are pulling homeowners policies out of CO?……
PS- Have you noticed that the big companies are so opposed to being forced to sell auto and homeowners policies in FL? Have you noticed that these same companies insist on having seperate FL shell companies so they can keep their nationwide profits seperate to allow poormouthing about profits in FL? Yes, Virginia, these are the SAME companies that whine everytime there is a hurricane and who try to cheat their customers when they are FORCED to settle their hurricane claims…..
well with all the illegals that drive & the volume of people that pay for insurance to get their license plates & then cancel & receive a refund, & laws that no one enforces as they might offend someone if they do, it all goes to law enforcement which they don’t. so I guess be prepared to pay.
so for $17.00 a month, the price of a ham sandwhich and cup of coffee once a month (essentially one cheap lunch a month), AllState, StateFarm and Progressive will reduce your automobile premium. On the back end, anyone wo doesn’t believe they will still sell PIP as an “add-on”, at 2-3x the price of what it is now, is a fool. The insurance industry isn’t stupid, they will do whatever is best for their bottom line, not yours of mine. As for fraud, that can be eliminated very easily. laws are on the books, enforce them! Don’t try and snowball the average working Joe with this “we’ll save you money crap”.
Average Joe!
The conversations I’ve seen on this website regarding Florida Home Onwers and Automobile Insurance.The avergae Joe is getting screwed to the wall already!
So Mr Marcus if you think that this will be the worst thing to do is offer PIP as an endorsement to the already skimpy policies Florida has you should wake up and smell the coffee!
Insurance Companies are using credit scoring for rate quotes.Who pays more there the average Joe.Loose a job,get laid off and only able to get a leser paying job well you know what your premiums may go up if you fall behind on payments you once could afford.
The entire setup in the Insurance Industry and it’s pricing structure needs an overhaul.I’ve said many times.The money that paid out as bonus’ every year should be reinvested in the company.
Give all the workers a decent raise 4% is a joke 15% may allow you to keep pace with your consumable living expenses and yes give the CEO/CFO a decent bonus for their leadership but who the heck should get to payout of almost 14 million in stock options for the sweat off the claims adjusters back!
Half these people don’t have a clue as to the nuts and bolts of the running of claims business but because they have a college degree they come up with some model/matrix which who knows what data they are using and they force the the working people to follow those screwed up ideas.
I’ve 25 years in the business and seen happy workers go to stressed out unhappy workers because of internal hedging(employee cut backs by job position elimination and early retirement) has occured.
These people are not being replaced!
The people who have 20 years experience have to watch their tails because they hire in some green back right out of college for 30k a year less and look for a reason to get rid of the people who know their jobs.
How do you like that insurance agents!
They can’t manipulate the numbers the way they used to the SEC has caught on.
With all due respect, You must be one of the bean counters.
Remember the band The Eagles?
They had a song: In the Garden of Allah, which had a verse; in the corporate world…there are rules no regulations only data to be manipulated.
Most insurance companies have realized somewhere in the range of 6 cents on the dollar after expenses.This is huge!
This is even with the security and exchange commissions investigation of Marsh and Maclennan (spelling?)one if not the largest insurance agencies in our country.
Many companies were near an expense loss ratio somewhere costing 2-10 cents on the dollar.
The insurance companies have had some of their best years in over 20 years so they are far from hurting.This is realized even after figuring in the CATS that have occured in the last few years.
The reason people look for the cheapest rates is they are tired of being hosed. You pay.pay,pay and make one claim ,god forbid,and you rates shoot through the roof.
There many forms of abuse in insurance claims that’s not the issue.
The real problem I see is the way the corporate positions are compensated for their tenure. THAT needs to change in the entire USA!
Our companies need to stop the skull and bone mentality and reinvest in our workers by way of better wages.
If this country of ours doesn’t acknowledge this it is headed on a downward spiral from the richest to the poorest in the world.
I don’t mind paying my FAIR share of the bill but don’t tell me that these people are not making money and good money at that!
The theory of insurance has been lost: Not put in a claim unless they would go broke replacing what they lost should one suffer a claim.
Now goes the story of how the entire industry grew and charged more.Need I say more?
In my state the Insurance Commissioner approves the rates based on on loss history. That is, the elected commissioner. That method seems to keep in check and balance rates with regard to insurers and insureds. My company forgives an accident if one is accident free for a period. Again, policyholders respond to low prices. If I polled my auto book of business and asked if we should charge those who have had accidents 10% more for three years, or
absorb the loss among the entire group without a small penalty, they would all say the same thing. Charge the guy with the accident a little more for a while. Why? Because such a small percentage actually have accidents, it happens relatively infrequently, that they 1) don’t think it will happen to them and
2) they want the person who caused the problem to pay the expense. Thats why Florida has a problem with PIP. Only half the drivers are paying their fair share by purchasing auto insurance. PIP probably costs exactly twice what it should. Downward spiral from richest to poorest? What country do you live in?
My country boasts 70% home ownership, the highest in my country’s history. I heard today on the radio (I hope those nasty insurance executives haven’t manipulated that too) that 95.5% of my countrymen who have sought work are employed, probably the highest in my country’s history.
No shortage of new cars (record sales since 9/11/01). I travelled on Memorial Day – no shortage of boats, RVs, and motorcycles. Sorry, what I see and who I talk to doesnt jive with the dismal realm you describe. Lastly, because we do have free market, anyone, even you, can start your own insurance company, Mutual of Marcus. Pay your execs whatever you want. Beware – other companies vying for managerial talent will probably outbid you.
industry has broken its promises to lower rates and help restore the state’s . I ask if you have no falut Florida who will save money if you have a need for your policy to be paid?Something we have all paid on for years. A contract is a joke. Do we have a thinking cap we can all put on. They made the rules and can change them anytime they want to. IS THIS HOW OUR LAWS WORK- YES
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Unfortunately, no-fault is one of those ideas that sounds great in theory but has not worked out in practice. From everything I’ve read on it, every state went to it expecting to cut insurance costs for the consumers. It didn’t work out over time, so some states have gone back to the previous system.
The no-fault states also have some of the highest premiums in the country.
I hope you didn’t miss the 6/19/07 article in IJ that State Farm has cut its rates 9 times in CO since we repealed no-fault. The most recent cut was 7.2% and will save CO consumers $38MM annually. This cut brings the total reduction to 40% since the repeal on 7/1/03. This means that auto insurance has become much more affordable and more people can afford to buy the mandatory coverage. Sadly, no-fault created more litigation not less due to its mandate and complexity. Now, more money pays claims and less is wasted on administrative expense. Yes the health providers squawked long and hard, but the important ones are all doing very well. We will be shipping a few “surplus” chiros to FL. Of course, this means less commission, so producers oppose regardless of the merits.
1.What profit motive is influencing Ins Comp to want PIP sunsetted?
Answr: The major companies like State Farm, Allstate,etc are pulling homeowners policies of FL so they are left w/auto as their major profit areas. They can’t manage denials on PIP as easily as other coverages so they want to eliminate it to MAKE money, not out of altruism for their customers.
2.What have Ins companies done to stem the tide of PIP fraud in FL in the last decade?
Answr: Hardly anything. The activity of understaffed SIU units in FL has been concentrated on property/workers comp fraud. PIP fraud has gotten token handling and what they have done has involved moronic litigation.(See State Farm’s litigation vs Florida Hospital)
3. What are the insurance companies doing to ensure that their customers in Fl at least can depend on at fault motorists to have adequate BI and PD coverage?
Answr: Nothing. Their silence on this issue clearly demonstrates that they want to ignore the fact that a HUGE percentage of FL drivers(especially new residents) have NO INSURANCE coverage at all! IS this an exaggeration? Talk to someone in Miami, Orlando, etc…
4.Who do the insurance companies want to insure?
Answr: Ideally, they want white, upper middle class people who never make claims. This group will pay out of pocket before making a claim that might raise rates-they can afford to! Since they can’t exclude everyone else, they are subtly pushing to allow these “others” to go without mandatory insurance. You would think that they would want EVRYONE forced to buy insurance, but in today’s ins world the companies make as much money off of unspent premium dollar as they do off of investments. This is a recent trend, as in decades past ins companies might spend $1.05+ on every $1 taken in premium and STILL make a profit. Today, the greed of these companies is incredible, and they all shoot for spending 80 cents on each dollar taken in premium. Greed seems to drive ALL business actions when it comes to insurance in FL…
5.What about the rate decreases they talk about?
Answr: For the first year there will be decreases. By the second year, when the Ins Comp have to pay out on UM and see longer pending on BI cases they will pass these costs onto the customers.
6.Didn’t Colorado see huge savings after PIP went away?
Answr: CO and FL are VERY different markets. When did you last see a headline that companies are pulling homeowners policies out of CO?……
PS- Have you noticed that the big companies are so opposed to being forced to sell auto and homeowners policies in FL? Have you noticed that these same companies insist on having seperate FL shell companies so they can keep their nationwide profits seperate to allow poormouthing about profits in FL? Yes, Virginia, these are the SAME companies that whine everytime there is a hurricane and who try to cheat their customers when they are FORCED to settle their hurricane claims…..
well with all the illegals that drive & the volume of people that pay for insurance to get their license plates & then cancel & receive a refund, & laws that no one enforces as they might offend someone if they do, it all goes to law enforcement which they don’t. so I guess be prepared to pay.
so for $17.00 a month, the price of a ham sandwhich and cup of coffee once a month (essentially one cheap lunch a month), AllState, StateFarm and Progressive will reduce your automobile premium. On the back end, anyone wo doesn’t believe they will still sell PIP as an “add-on”, at 2-3x the price of what it is now, is a fool. The insurance industry isn’t stupid, they will do whatever is best for their bottom line, not yours of mine. As for fraud, that can be eliminated very easily. laws are on the books, enforce them! Don’t try and snowball the average working Joe with this “we’ll save you money crap”.
Average Joe!
The conversations I’ve seen on this website regarding Florida Home Onwers and Automobile Insurance.The avergae Joe is getting screwed to the wall already!
So Mr Marcus if you think that this will be the worst thing to do is offer PIP as an endorsement to the already skimpy policies Florida has you should wake up and smell the coffee!
Insurance Companies are using credit scoring for rate quotes.Who pays more there the average Joe.Loose a job,get laid off and only able to get a leser paying job well you know what your premiums may go up if you fall behind on payments you once could afford.
The entire setup in the Insurance Industry and it’s pricing structure needs an overhaul.I’ve said many times.The money that paid out as bonus’ every year should be reinvested in the company.
Give all the workers a decent raise 4% is a joke 15% may allow you to keep pace with your consumable living expenses and yes give the CEO/CFO a decent bonus for their leadership but who the heck should get to payout of almost 14 million in stock options for the sweat off the claims adjusters back!
Half these people don’t have a clue as to the nuts and bolts of the running of claims business but because they have a college degree they come up with some model/matrix which who knows what data they are using and they force the the working people to follow those screwed up ideas.
I’ve 25 years in the business and seen happy workers go to stressed out unhappy workers because of internal hedging(employee cut backs by job position elimination and early retirement) has occured.
These people are not being replaced!
The people who have 20 years experience have to watch their tails because they hire in some green back right out of college for 30k a year less and look for a reason to get rid of the people who know their jobs.
How do you like that insurance agents!
They can’t manipulate the numbers the way they used to the SEC has caught on.
gill fin,
With all due respect, You must be one of the bean counters.
Remember the band The Eagles?
They had a song: In the Garden of Allah, which had a verse; in the corporate world…there are rules no regulations only data to be manipulated.
Most insurance companies have realized somewhere in the range of 6 cents on the dollar after expenses.This is huge!
This is even with the security and exchange commissions investigation of Marsh and Maclennan (spelling?)one if not the largest insurance agencies in our country.
Many companies were near an expense loss ratio somewhere costing 2-10 cents on the dollar.
The insurance companies have had some of their best years in over 20 years so they are far from hurting.This is realized even after figuring in the CATS that have occured in the last few years.
The reason people look for the cheapest rates is they are tired of being hosed. You pay.pay,pay and make one claim ,god forbid,and you rates shoot through the roof.
There many forms of abuse in insurance claims that’s not the issue.
The real problem I see is the way the corporate positions are compensated for their tenure. THAT needs to change in the entire USA!
Our companies need to stop the skull and bone mentality and reinvest in our workers by way of better wages.
If this country of ours doesn’t acknowledge this it is headed on a downward spiral from the richest to the poorest in the world.
I don’t mind paying my FAIR share of the bill but don’t tell me that these people are not making money and good money at that!
The theory of insurance has been lost: Not put in a claim unless they would go broke replacing what they lost should one suffer a claim.
Now goes the story of how the entire industry grew and charged more.Need I say more?
In my state the Insurance Commissioner approves the rates based on on loss history. That is, the elected commissioner. That method seems to keep in check and balance rates with regard to insurers and insureds. My company forgives an accident if one is accident free for a period. Again, policyholders respond to low prices. If I polled my auto book of business and asked if we should charge those who have had accidents 10% more for three years, or
absorb the loss among the entire group without a small penalty, they would all say the same thing. Charge the guy with the accident a little more for a while. Why? Because such a small percentage actually have accidents, it happens relatively infrequently, that they 1) don’t think it will happen to them and
2) they want the person who caused the problem to pay the expense. Thats why Florida has a problem with PIP. Only half the drivers are paying their fair share by purchasing auto insurance. PIP probably costs exactly twice what it should. Downward spiral from richest to poorest? What country do you live in?
My country boasts 70% home ownership, the highest in my country’s history. I heard today on the radio (I hope those nasty insurance executives haven’t manipulated that too) that 95.5% of my countrymen who have sought work are employed, probably the highest in my country’s history.
No shortage of new cars (record sales since 9/11/01). I travelled on Memorial Day – no shortage of boats, RVs, and motorcycles. Sorry, what I see and who I talk to doesnt jive with the dismal realm you describe. Lastly, because we do have free market, anyone, even you, can start your own insurance company, Mutual of Marcus. Pay your execs whatever you want. Beware – other companies vying for managerial talent will probably outbid you.
industry has broken its promises to lower rates and help restore the state’s . I ask if you have no falut Florida who will save money if you have a need for your policy to be paid?Something we have all paid on for years. A contract is a joke. Do we have a thinking cap we can all put on. They made the rules and can change them anytime they want to. IS THIS HOW OUR LAWS WORK- YES