Posted On: October 17, 2007, 1:07 pm CDT

Posted By: TKG

WalMart may choose to pull the widget off the shelf in GA or they may choose to accept their loss on that widget because of all the other widgets they make money on. Grocery stores do the same thing. Pull customers in the door with low priced items that in fact the store may lose money on. However, the total purchase made by that customer will more than make up for the loss on the low priced items. Again, I have to say you have to look at the whole picture, the bottom line. Here is the difference: I can choose whether or not I want to purchase that widget from WalMart. I can not choose whether I purchase Homeowners Insurance or Car Insurance. It is mandated. Therefore, since it is mandated, then I am being held held prisoner to the rate increases for an item that I have no choice in purchasing if I want to purchase a house with financing or legally drive a car. We just want Allstate and the other insurers to look at their bottom line in Florida. Some years they make money on homeowners and other years they don't. However, they make money on car and boat insurance, etc. every year. Can't their rates be adjusted based on the bottom line of their total Florida Market? Would WalMart close their stores in GA because they are losing money on some widgets or would they look at their bottom line in GA and say, hey we are still making a profit in GA, why lose that profit just because we are losing money on this one widget. When Governors declare a State of Emergency and freeze prices for items that people must have, such as food and gas and water, they are attempting to prevent price gouging in an emergency situation. The rate increase regulations are an attempt to do the same thing.