New York: Car Repair Shops Can Rebate Deductibles
East News • April 22, 2008
Allowing car collision repair facilities to pay all or part of a deductible to an insured does not constitute a rebate prohibited under New York law, lawyers for the state's insurance department ...
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Subject: RE: RE: RE: RE: RE: RE: RE: It's Fraud
Posted On: April 25, 2008, 6:13 pm CDT
Posted By: Fred,
Comment:
Jake,
"why should anyone be able to buy a $500 or $1k deductible at a reduced rate be able to have the same loss with the same damage as someone that has paied the higher premium for the zero deductible and have the claims examiner write a check out for the same amount to be paid to both customers?"
Where did that come from?? I've re-read this Thread and can't find any reference to such a thing as you just presented.
But, anyway, Here is a thought. Instead of a Deductible, wouldn't a "minimum claim" be more consumer friendly?? With a minimum claim one would have to reach that amount of a loss before filing a claim. But, when the minimum has been met, the insurer pays the full amount. A minimum claim would eliminate nuance claims much like the Deductible does, while at the same time not be a punishing to the consumer when losses exceed their ability to pay.
==============
"The fact is that insurance companies are one of the most highly state regulated companies and if we as insurance companies were doing something wrong, there are very heavy penalties."
That may be true, but, with the current lack of enforcement and when something is enforced the DOI's insignificant fines are barely a hand-slap.
The following excerpt from a speech by Ernst Csiszar, [ Vice President National Association of Insurance Commissioners] back in oct. 2003 said a lot.
"Why Are Insurance Companies and Agents Regulated?
As the Senate Commerce Committee evaluates state insurance regulation, members of the NAIC hope you will start by asking the fundamental question: "Why are insurance companies and agents regulated in the United States?" Government regulation of insurance companies and agents began in the states well over a century ago for one overriding reason - to protect consumers. [[ Our most important consumer protection is to assure that insurers remain solvent ]] so they can meet their obligations to pay claims, as recently evidenced in the aftermath of September 11th and Hurricane Isabel. Beyond that, states supervise insurance sales and marketing practices, as well as policy terms and conditions, to ensure that consumers are treated fairly when they purchase insurance products and file claims."
Above [[Brackets]] were added by me to highlight what was likely the Core component. And boy, have they ever done a great job of keeping the Insurance Industry very, very Wealthy. err Solvent.
As for catastrophic losses... does Re-insurance ring any bells?? Think *Katrina* The worst disaster ever in the United States, and the Top insurer's are still showing Record Profits??
As I've read the stories and followed the Trials that followed... well its just plan sickening. :-( So please don't go there with the *Poor Insurer* lines.
===============
"About your part 3:
just like any type of business in this world, if you want more business, you have to portray a valuable image to the public. Maybe instead of inflating repair orders in an effort to hide deductibles, repair shops could take action that is good for the community, advertise, sponsor the local baseball team, ask for referrals, and network a little.....all these things will increase the shops visibility and reputation, thus getting more business in the door."
You are correct... that is how it works in a Free Market... Free of Insurer dominance. But in the real world, Medical and Repair industries are under the thumb of insurers and the above only happens if one has a Niche Business or they play by the Third Party (insurers) Rules.
Hey we are getting a bit deeper into this subject than needed on a Public Board.
Its been interesting.
Fred,
Subject: RE: RE: RE: RE: RE: RE: RE: It's Fraud
"why should anyone be able to buy a $500 or $1k deductible at a reduced rate be able to have the same loss with the same damage as someone that has paied the higher premium for the zero deductible and have the claims examiner write a check out for the same amount to be paid to both customers?"
Where did that come from?? I've re-read this Thread and can't find any reference to such a thing as you just presented.
But, anyway, Here is a thought. Instead of a Deductible, wouldn't a "minimum claim" be more consumer friendly?? With a minimum claim one would have to reach that amount of a loss before filing a claim. But, when the minimum has been met, the insurer pays the full amount. A minimum claim would eliminate nuance claims much like the Deductible does, while at the same time not be a punishing to the consumer when losses exceed their ability to pay.
==============
"The fact is that insurance companies are one of the most highly state regulated companies and if we as insurance companies were doing something wrong, there are very heavy penalties."
That may be true, but, with the current lack of enforcement and when something is enforced the DOI's insignificant fines are barely a hand-slap.
The following excerpt from a speech by Ernst Csiszar, [ Vice President National Association of Insurance Commissioners] back in oct. 2003 said a lot.
"Why Are Insurance Companies and Agents Regulated?
As the Senate Commerce Committee evaluates state insurance regulation, members of the NAIC hope you will start by asking the fundamental question: "Why are insurance companies and agents regulated in the United States?" Government regulation of insurance companies and agents began in the states well over a century ago for one overriding reason - to protect consumers. [[ Our most important consumer protection is to assure that insurers remain solvent ]] so they can meet their obligations to pay claims, as recently evidenced in the aftermath of September 11th and Hurricane Isabel. Beyond that, states supervise insurance sales and marketing practices, as well as policy terms and conditions, to ensure that consumers are treated fairly when they purchase insurance products and file claims."
Above [[Brackets]] were added by me to highlight what was likely the Core component. And boy, have they ever done a great job of keeping the Insurance Industry very, very Wealthy. err Solvent.
As for catastrophic losses... does Re-insurance ring any bells?? Think *Katrina* The worst disaster ever in the United States, and the Top insurer's are still showing Record Profits??
As I've read the stories and followed the Trials that followed... well its just plan sickening. :-( So please don't go there with the *Poor Insurer* lines.
===============
"About your part 3:
just like any type of business in this world, if you want more business, you have to portray a valuable image to the public. Maybe instead of inflating repair orders in an effort to hide deductibles, repair shops could take action that is good for the community, advertise, sponsor the local baseball team, ask for referrals, and network a little.....all these things will increase the shops visibility and reputation, thus getting more business in the door."
You are correct... that is how it works in a Free Market... Free of Insurer dominance. But in the real world, Medical and Repair industries are under the thumb of insurers and the above only happens if one has a Niche Business or they play by the Third Party (insurers) Rules.
Hey we are getting a bit deeper into this subject than needed on a Public Board.
Its been interesting.
Fred,