Posted On: March 8, 2005, 4:20 pm CST

Posted By: Mark

Tom what would be the fun then! Insurance by it's very nature is purposefully confusing. It is a contract, period. Agents sell it without reading it, consumers buy it without reading it and everyone is shocked when something is not covered. The contract has limitations imposed on it by Federal and State law. In many cases the contract is written and someone changes a law which makes things different at the time of the claim. The industry is being reformed NOW in many ways. Companies are not accepting risk as they use to due to changing laws...can you say "Construction Defect"? How about "Medical Malpractise"? If a lawyer can imagine a tort a lawsuit can be brought and the insurance companies after a while have no choice except to exit the market. Laws/Lawsuits dictates what is or is not profitable for an insurance company to accept as a risk especially in light of the reduction of available reinsurance and the lack of quality reinsurers. End of Day the Warren Buffets of the world will win because they know the game that we get to play at everyday better than we do...otherwise we would be Buffett.