As I understand it, the new company will be in the best of both worlds. Less interference by the government, little or no oversight by the Dept of Ins and no taxes. Sweetheart deal.
Yeah. Seems very unfair to the private insurance companies trying to do business in the state. The new company should play under the same rules as everyone else.
Its a shame. The State did a great job building a working and profitable risk sharing system. As a last resort insurer, this system seemed to be working. Then greedy politicians think its fair to raid the surplus, as a result, the State creates a new entity. I would have been easier for the State to just pass legislation saying it could no longer raid the surplus. Why did they have to create a whole new entity? Yeah, the new leadership says that everything will remain the same, but we all know that is not true. Case in point, General Casualty used to be a good company in America, then it was purcahsed by QBE… QBE said it would not make any changes,,, and suddenly General Casualty is no more. QBE of the America’s sucks. I fear that the fine people in Maryland will suffer as the new company grows. They will make decisions that change the way they operate. In fact they should, as they grow, they should adapt and change… but then knowing that is true, they should not sell us a line of bull saying “all will remain the same.” This is a political problem, created by politicians, the solution too came out of a political battle. It was not a solution that has the best interest of high risk work comp insured’s in mind. Too bad for the State of Maryland.
While I generally agree that gov’t involvment is not the best, I am not sure its wise to say “Any time” gov’t influce is reduced that everyone benefits.
All in all, I think its a fine move. My comments were more directed at the fact that its seems to me the IWIF was working just fine. If the politicians would have not raided the surplus, then we would not have needed to create a new entitiy. The issues were not the fact that government has influence over IWIF, the issue was that governemnt was flat out stealing from IWIF. To me this is not an issue of government oversight, its an issue of internal state budget.
So now that IWIF is privatized, government will no longer have the opportunity to steal from it, since they no longer have oversight authority. Everybody wins, especially taxpayers who no longer have to subsidize an insurance operation.
Looks like the subsidy went the other way– IWIF, and its policyholders, were subsidizing taxpayers, albeit involuntarily through the raid on surplus.
But the new entity still won’t pay taxes, which might be viewed as an ongoing subsidy in relation to its competitors.
So funny. It is common place knowledge politicians are the scum of the earth. Yet people still act surprised when they loot, extort and lie. Insanity is doing the same thing over and over and expecting a different result…
Well; I’m glad you all are happy. after 18 years in business, I had my first 2 significant claims over the last two years. Just got my renewal with the “new” Private Chesapeake. Premium Increase of 267% with an added bonus of additional 212% MOD add on. I think I would rather have had an opportunity to deal with The State of Maryland.
As I understand it, the new company will be in the best of both worlds. Less interference by the government, little or no oversight by the Dept of Ins and no taxes. Sweetheart deal.
Yeah. Seems very unfair to the private insurance companies trying to do business in the state. The new company should play under the same rules as everyone else.
Its a shame. The State did a great job building a working and profitable risk sharing system. As a last resort insurer, this system seemed to be working. Then greedy politicians think its fair to raid the surplus, as a result, the State creates a new entity. I would have been easier for the State to just pass legislation saying it could no longer raid the surplus. Why did they have to create a whole new entity? Yeah, the new leadership says that everything will remain the same, but we all know that is not true. Case in point, General Casualty used to be a good company in America, then it was purcahsed by QBE… QBE said it would not make any changes,,, and suddenly General Casualty is no more. QBE of the America’s sucks. I fear that the fine people in Maryland will suffer as the new company grows. They will make decisions that change the way they operate. In fact they should, as they grow, they should adapt and change… but then knowing that is true, they should not sell us a line of bull saying “all will remain the same.” This is a political problem, created by politicians, the solution too came out of a political battle. It was not a solution that has the best interest of high risk work comp insured’s in mind. Too bad for the State of Maryland.
Any time the government’s influence over an insurance operation can be reduced, everyone benefits. Policyholders, taxpayers, everybody.
While I generally agree that gov’t involvment is not the best, I am not sure its wise to say “Any time” gov’t influce is reduced that everyone benefits.
All in all, I think its a fine move. My comments were more directed at the fact that its seems to me the IWIF was working just fine. If the politicians would have not raided the surplus, then we would not have needed to create a new entitiy. The issues were not the fact that government has influence over IWIF, the issue was that governemnt was flat out stealing from IWIF. To me this is not an issue of government oversight, its an issue of internal state budget.
So now that IWIF is privatized, government will no longer have the opportunity to steal from it, since they no longer have oversight authority. Everybody wins, especially taxpayers who no longer have to subsidize an insurance operation.
Looks like the subsidy went the other way– IWIF, and its policyholders, were subsidizing taxpayers, albeit involuntarily through the raid on surplus.
But the new entity still won’t pay taxes, which might be viewed as an ongoing subsidy in relation to its competitors.
So funny. It is common place knowledge politicians are the scum of the earth. Yet people still act surprised when they loot, extort and lie. Insanity is doing the same thing over and over and expecting a different result…
All other Insurance Companies have been taxed 3% of premiums, plus for decades. IWIF did not.
IWIF has always had a tax advantage of at least 3%.
Now they will be paying 3% tax, great for consumers.
Well; I’m glad you all are happy. after 18 years in business, I had my first 2 significant claims over the last two years. Just got my renewal with the “new” Private Chesapeake. Premium Increase of 267% with an added bonus of additional 212% MOD add on. I think I would rather have had an opportunity to deal with The State of Maryland.