Do legislators REALLY think people will save for natural disasters in a tax-free account? The savings rates for retirement are depressingly low (see Roth IRA for tax-free retirement savings). We know retirement is coming, less certainty exists for the natural disasters. If people won\’t save for their own retirement, they certainly won\’t for a natural disaster.
I agree that most people would probably not use this…
However for those who might, the dollar amounts that were identified seem inadequate. Someone with a $1,000 deductible would be able to save $2,000 in this account.
In the event of a cat, I could see me spending that $2,000 in a blink of an eye, finding temporary housing, buying some clothes and other necessities, maybe even a down payment on a replacement vehicle.
Seems to me that these limits should be significantly higher.
So let me get this correct. You still pay insurance premiums to the insurance company. In addition to this you give them MORE money towards an account similar to a IRA,that they control,in the event you suffer a catastrophic loss.
If they do away with having to purchase insurance altogether it sounds like a great idea otherwise all the public is doing is pouring more money into an already corrupt institution that robs billions per year from the consumer and doesn\’t like to make good on the contracts already in place for catastrophic losses.
Where is all the money people pay in for premiums going????
I think what they are saying is that you can put money aside in \”YOUR\” tax free savings account to pay deductibles and other \”emergency expenses\” in the event of a catastrophe.
Oh and Chad, do you really think that the government would come up with a simple and effective idea?
The key to this isn\’t the ability of homeowners to save for cats. They should, but they won\’t.
Allowing insurers to build cat reserves will lower rates for consumers, because insurers won\’t have to pay taxes on artificial profits if there happens to be a low cat year.
What the heck have they thought in the past?
There would never be a catastrophy?
Come on. The money flows like tides. They should have and likely have thought of this happening long before now after all there thought process is supposed to be a minimum of ten years ahead on outlook that why the higher ups with the colleg degrees make the big bucks,right? Or is it?
You must be one of the lucky people that doesn\’t live paycheck to paycheck.
The rising costs of fuel,electricity,food,taxes and insurance have not kept pace with the rise in ones paycheck.
As much as it hurts our government has to stay with the status quo instead of trying to build empire zones.
SAY NO TO MORE SPENDING! I know it hurts your popularity.
No not pointed towards you unless you are directly involved
See my first comments 4/5.
If what you say is true I would prefer to handle the money on my own.
But as I said how do you put money away if you live paycheck to paycheck.
Insurance companies should have been doing this for their insureds a long time ago but instead there are large payouts to CEO\’s and CFO\’s and some investors in the billions in the form of stock option sales.
I\’m sorry but nobody is worth that kind of money. It\’s just plain wrong! Yes a performance bonus can be pid but it shouldn\’t exceed 6% of the lowest paid worker within the company.
If and a BIG IF this were to occur there would be plenty of money to payout in the event of CAT losses. Do the math!
We all know of course this would never happen without government involvement and major regulation overhaul with the S&E involvement.
\”Yes a performance bonus can be pid but it shouldn\’t exceed 6% of the lowest paid worker within the company.\”
I agree CEO\’s get paid WAY too much money, but you have to have made some sort of error in the comment above. A performance bonus that is 6% of the lowest paid worker? Let\’s assume the worker makes $25,000… the bonus would be $1,500? Sorry, I know they are overpaid, but that\’s a ridiculous bonus. I have gotten way bigger bonuses than that paltry amount.
Perhaps they shouldn\’t get more than a certain percentage of THEIR salary. How would you like it if your bonus was paid dependent on someone who makes minimum wage?
It\’s not for me to say how much somebody else should pay or get paid, but your comment below shows why you in particular should support this bill:
\”Insurance companies should have been doing this for their insureds a long time ago but instead there are large payouts to CEO\’s and CFO\’s and some investors in the billions in the form of stock option sales.\”
Insurers have built surplus when they could (homeowners has been a huge money loser for all of my career until very recently, and then only in non-hurricane states). However, they have been prohibited from establishing catastrophe reserves. The difference is that surplus comes from profits, out of which taxes, dividends, and yes, bonuses, are taken before the remainder is released to surplus. If catastrophe reserves were permitted, policyholder protection increases while taxes, dividends, and bonuses drop.
Take 2006, for example. Since hurricane activity was minimal, artificial profits were earned throughout the southeast, resulting in higher taxes, dividends, and bonuses. Wouldn\’t you rather have your insurer save that money in a liability account and decrease rates, rather than giving it to stockholders and high-paid executives?
There\’s something here for capitalists and socialists alike!
If the money made will be reinvested in the company and the workers don\’t have to sacrifice health insurance costs and vacation time and investment accounts overall hedging then YES IAM ALL FOR IT!.
You must be one of the people that get such large payments! I can tell by your bitterness towards my suggestion.
Happy employees make for a more productive environment and when you have the cost of living WELL exceeding a petty 4% pay increase you\’re not going to have happy workers you will have high turnaround and the cusomer ultimately pays for it.
If you are on the stock buying side then you\’re just as much to blame because you as a cinsumer are causing the American jobs to be shipped overseas to increase company profits.
Regards
I agree to a certain extent. If this is going to be an additional charge to premiums paid then I would rather control my own money.
I agreee with your statement that Ins Co\’s should have been preapred for these CATs a long time ago but instead they pocketed the money and never even reinvested in the very company they work for.
When you have to justify a ink cartridge as an expense and it\’s part of a tool to perform a function within the insurance workplace. That\’s Insane!
Just a quick clarification. The quoted statement was yours, not mine. (That\’s probably why you agreed with that part so wholeheartedly.) For my part, I don\’t think it\’s any of my business what somebody else is paid. I was just attempting to explain that tax-exempt cat reserves for insurers are a net gain for policyholders.
\”You must be one of the people that get such large payments! I can tell by your bitterness towards my suggestion.\”- You can\’t tell anything from my post, except what I have stated.
How do you figure? Wow, you\’re not as intelligent as I was giving you credit for. I wasn\’t bitter. Your idea just wasn\’t feasible. Essentially, your idea was stupid. You complain about a measly 4% raise. I never said that was fair, did I? I asked you how you would like a 5% bonus off minimum wage (approximately $800 or so) if you have done an amazing job for your company. Stop spouting off when you can\’t even comprehend what someone has posted.
You\’re obviously the bitter one. So much so that when someone doesn\’t agree, you fill their mouths (posts) with your inane comments. Besides, everyone knows, if I made the big bucks I sure as h*** wouldn\’t be in my office at 3:30 on a Tuesday afternoon.
Please enlighten us on to what method you would \’reinvest\’ the money in the company. True, a bonus for many CEO\’s sound like pipedreams to the most of us, but some of those bonus\’ are purely based upon performance. Think of it like a football coach; you win, you get paid handsomely.
How would McDonald\’s take the bonus money they won\’t pay their ceo under your plan and reinvest? Brighter colored frenchfrie cartons? Bringing back the Arch Deluxe?
Don\’t forget the golden rule: he who hast the gold makes da rules. Aint\’ fair, but dat\’s da way life is sometimes. Some CEO\’s are worth the cost; some aren\’t. Some ideas are good, others stink.
If you can create a better socialistic system, please do, just take it to whatever country you move to. Thanks.
Shut up Chad. Too funny… I\’d rather they bring back the McRib… or have they? I don\’t really eat at McDonalds- love the fries though. And brighter colored containers are a GREAT idea. I think more people would supersize then.
Anyway, I also wanted to say that $1,500 isn\’t a small amount of money. Perhaps I should have been more clear. To a CEO being paid hundreds of thousands (or millions) of dollars, $1,500 is like a day\’s worth of work (assuming $500,000 per year). Imagine if your company gave you a bonus equal to 1 day of work. And this LJ or PLJ (whoever) is complaining about how he gets treated now. Yes, let\’s implement his/her idea of a bonus plan structure and see how he likes his $200 bonus. Give me a break!
Now that\’s some irrational thinking. Those expenses are done by choice while We are forced to pay insurance premiums.
Think before you speak!
Anyone stupid enough to pay the costs to buy a season ticket to a football franchise or baseball franchise has the choice to do so!
By the way it\’s that sort of thinking that is sending jobs overseas. If your job can be done by someone on the phone guess what? When and if the time comes and they hand you your pink slip maybe this discussion will come to mind.
I\’ve spoken my peice.
\”By the way it\’s that sort of thinking that is sending jobs overseas. If your job can be done by someone on the phone guess what? When and if the time comes and they hand you your pink slip maybe this discussion will come to mind.
I\’ve spoken my peice.\”
You have NO IDEA what I am thinking because you obviously have NO CLUE what I said. I\’m sorry any moron can do your job, but not the case with mine.
Don\’t worry about me, I have a clue. You, however, need to buy a vowel. Sorry to be so harsh, but you haven\’t picked up on ONE single thing I posted. Try reading my posts again without all the bitterness you have towards your company.
I did read your post clearly and they came through loud and clear. You sarchasm didn\’t go unfound.
The Ins Co are not the only culprits and that shows how much YOU know about business otherwise you would have intelligently mentioned, what about?
There sdhouldn\’t be any problems with people receiving high bonus\’the point I wanted to make is that they are totally out of control and the reason the are is due to hedging. Do twice the work you used to? By the way I\’m not some phone answering person but who is to say that person doesn\’t work as hard as I do.
Accountability for the companies performance judges one on the stature of within.
I happened to be liason for hundreds of people at any given time throughout the day state law compliance regarding claims process and legalities.
So don\’t benounce my intelligence or knowledge otherwise your just a loud mouth that doesn\’t have a clue!
A bonus is a bonus. We have come to expect it as workers and it\’s the very thing that is causing increase three fold in some aspects of business.
So no I didn\’t miss your comments. I ignored it due to the ignorance of your reply
So don\’t benounce my intelligence or knowledge otherwise your just a loud mouth that doesn\’t have a clue!\”
Consider the source, I say.
\”So no I didn\’t miss your comments. I ignored it due to the ignorance of your reply\”
Yeah, you did miss my comments. It is clear now (and was before but I thought I\’d give it a try) that you can\’t comprehend anything past \”Dick and Jane\”.
\”So let me get this correct. You still pay insurance premiums to the insurance company. In addition to this you give them MORE money towards an account similar to a IRA,that they control,in the event you suffer a catastrophic loss.\”
PLJ-
You\’re the one that posted the above comment. You didn\’t \”get\” it from the beginning. You\’re certainly not going to get it now.
Do legislators REALLY think people will save for natural disasters in a tax-free account? The savings rates for retirement are depressingly low (see Roth IRA for tax-free retirement savings). We know retirement is coming, less certainty exists for the natural disasters. If people won\’t save for their own retirement, they certainly won\’t for a natural disaster.
Besides, so many count on a government bailout!!
I agree that most people would probably not use this…
However for those who might, the dollar amounts that were identified seem inadequate. Someone with a $1,000 deductible would be able to save $2,000 in this account.
In the event of a cat, I could see me spending that $2,000 in a blink of an eye, finding temporary housing, buying some clothes and other necessities, maybe even a down payment on a replacement vehicle.
Seems to me that these limits should be significantly higher.
wouldn\’t it be easier to allow people to borrow tax free from their IRA\’s and 401k/403b\’s?
or better yet, the future social security that won\’t be there when I retire?
So let me get this correct. You still pay insurance premiums to the insurance company. In addition to this you give them MORE money towards an account similar to a IRA,that they control,in the event you suffer a catastrophic loss.
If they do away with having to purchase insurance altogether it sounds like a great idea otherwise all the public is doing is pouring more money into an already corrupt institution that robs billions per year from the consumer and doesn\’t like to make good on the contracts already in place for catastrophic losses.
Where is all the money people pay in for premiums going????
I think what they are saying is that you can put money aside in \”YOUR\” tax free savings account to pay deductibles and other \”emergency expenses\” in the event of a catastrophe.
Oh and Chad, do you really think that the government would come up with a simple and effective idea?
The key to this isn\’t the ability of homeowners to save for cats. They should, but they won\’t.
Allowing insurers to build cat reserves will lower rates for consumers, because insurers won\’t have to pay taxes on artificial profits if there happens to be a low cat year.
What the heck have they thought in the past?
There would never be a catastrophy?
Come on. The money flows like tides. They should have and likely have thought of this happening long before now after all there thought process is supposed to be a minimum of ten years ahead on outlook that why the higher ups with the colleg degrees make the big bucks,right? Or is it?
You must be one of the lucky people that doesn\’t live paycheck to paycheck.
The rising costs of fuel,electricity,food,taxes and insurance have not kept pace with the rise in ones paycheck.
As much as it hurts our government has to stay with the status quo instead of trying to build empire zones.
SAY NO TO MORE SPENDING! I know it hurts your popularity.
PLJ, I can\’t tell if your comments are intended for me, so forgive me if they were not.
The industry has wanted this for years. It\’s only due to the heightened hurricane activity that somebody is finally listening.
No not pointed towards you unless you are directly involved
See my first comments 4/5.
If what you say is true I would prefer to handle the money on my own.
But as I said how do you put money away if you live paycheck to paycheck.
Insurance companies should have been doing this for their insureds a long time ago but instead there are large payouts to CEO\’s and CFO\’s and some investors in the billions in the form of stock option sales.
I\’m sorry but nobody is worth that kind of money. It\’s just plain wrong! Yes a performance bonus can be pid but it shouldn\’t exceed 6% of the lowest paid worker within the company.
If and a BIG IF this were to occur there would be plenty of money to payout in the event of CAT losses. Do the math!
We all know of course this would never happen without government involvement and major regulation overhaul with the S&E involvement.
\”Yes a performance bonus can be pid but it shouldn\’t exceed 6% of the lowest paid worker within the company.\”
I agree CEO\’s get paid WAY too much money, but you have to have made some sort of error in the comment above. A performance bonus that is 6% of the lowest paid worker? Let\’s assume the worker makes $25,000… the bonus would be $1,500? Sorry, I know they are overpaid, but that\’s a ridiculous bonus. I have gotten way bigger bonuses than that paltry amount.
Perhaps they shouldn\’t get more than a certain percentage of THEIR salary. How would you like it if your bonus was paid dependent on someone who makes minimum wage?
It\’s not for me to say how much somebody else should pay or get paid, but your comment below shows why you in particular should support this bill:
\”Insurance companies should have been doing this for their insureds a long time ago but instead there are large payouts to CEO\’s and CFO\’s and some investors in the billions in the form of stock option sales.\”
Insurers have built surplus when they could (homeowners has been a huge money loser for all of my career until very recently, and then only in non-hurricane states). However, they have been prohibited from establishing catastrophe reserves. The difference is that surplus comes from profits, out of which taxes, dividends, and yes, bonuses, are taken before the remainder is released to surplus. If catastrophe reserves were permitted, policyholder protection increases while taxes, dividends, and bonuses drop.
Take 2006, for example. Since hurricane activity was minimal, artificial profits were earned throughout the southeast, resulting in higher taxes, dividends, and bonuses. Wouldn\’t you rather have your insurer save that money in a liability account and decrease rates, rather than giving it to stockholders and high-paid executives?
There\’s something here for capitalists and socialists alike!
If the money made will be reinvested in the company and the workers don\’t have to sacrifice health insurance costs and vacation time and investment accounts overall hedging then YES IAM ALL FOR IT!.
You must be one of the people that get such large payments! I can tell by your bitterness towards my suggestion.
Happy employees make for a more productive environment and when you have the cost of living WELL exceeding a petty 4% pay increase you\’re not going to have happy workers you will have high turnaround and the cusomer ultimately pays for it.
If you are on the stock buying side then you\’re just as much to blame because you as a cinsumer are causing the American jobs to be shipped overseas to increase company profits.
Regards
I agree to a certain extent. If this is going to be an additional charge to premiums paid then I would rather control my own money.
I agreee with your statement that Ins Co\’s should have been preapred for these CATs a long time ago but instead they pocketed the money and never even reinvested in the very company they work for.
When you have to justify a ink cartridge as an expense and it\’s part of a tool to perform a function within the insurance workplace. That\’s Insane!
Just a quick clarification. The quoted statement was yours, not mine. (That\’s probably why you agreed with that part so wholeheartedly.) For my part, I don\’t think it\’s any of my business what somebody else is paid. I was just attempting to explain that tax-exempt cat reserves for insurers are a net gain for policyholders.
\”You must be one of the people that get such large payments! I can tell by your bitterness towards my suggestion.\”- You can\’t tell anything from my post, except what I have stated.
How do you figure? Wow, you\’re not as intelligent as I was giving you credit for. I wasn\’t bitter. Your idea just wasn\’t feasible. Essentially, your idea was stupid. You complain about a measly 4% raise. I never said that was fair, did I? I asked you how you would like a 5% bonus off minimum wage (approximately $800 or so) if you have done an amazing job for your company. Stop spouting off when you can\’t even comprehend what someone has posted.
You\’re obviously the bitter one. So much so that when someone doesn\’t agree, you fill their mouths (posts) with your inane comments. Besides, everyone knows, if I made the big bucks I sure as h*** wouldn\’t be in my office at 3:30 on a Tuesday afternoon.
My bad… 6%
Please enlighten us on to what method you would \’reinvest\’ the money in the company. True, a bonus for many CEO\’s sound like pipedreams to the most of us, but some of those bonus\’ are purely based upon performance. Think of it like a football coach; you win, you get paid handsomely.
How would McDonald\’s take the bonus money they won\’t pay their ceo under your plan and reinvest? Brighter colored frenchfrie cartons? Bringing back the Arch Deluxe?
Don\’t forget the golden rule: he who hast the gold makes da rules. Aint\’ fair, but dat\’s da way life is sometimes. Some CEO\’s are worth the cost; some aren\’t. Some ideas are good, others stink.
If you can create a better socialistic system, please do, just take it to whatever country you move to. Thanks.
And at what salary rate? that\’s the kicker or was it calculated off LAE for the year?
Bringing back the Arch Deluxe?
Shut up Chad. Too funny… I\’d rather they bring back the McRib… or have they? I don\’t really eat at McDonalds- love the fries though. And brighter colored containers are a GREAT idea. I think more people would supersize then.
Anyway, I also wanted to say that $1,500 isn\’t a small amount of money. Perhaps I should have been more clear. To a CEO being paid hundreds of thousands (or millions) of dollars, $1,500 is like a day\’s worth of work (assuming $500,000 per year). Imagine if your company gave you a bonus equal to 1 day of work. And this LJ or PLJ (whoever) is complaining about how he gets treated now. Yes, let\’s implement his/her idea of a bonus plan structure and see how he likes his $200 bonus. Give me a break!
Now that\’s some irrational thinking. Those expenses are done by choice while We are forced to pay insurance premiums.
Think before you speak!
Anyone stupid enough to pay the costs to buy a season ticket to a football franchise or baseball franchise has the choice to do so!
By the way it\’s that sort of thinking that is sending jobs overseas. If your job can be done by someone on the phone guess what? When and if the time comes and they hand you your pink slip maybe this discussion will come to mind.
I\’ve spoken my peice.
Regards
\”By the way it\’s that sort of thinking that is sending jobs overseas. If your job can be done by someone on the phone guess what? When and if the time comes and they hand you your pink slip maybe this discussion will come to mind.
I\’ve spoken my peice.\”
You have NO IDEA what I am thinking because you obviously have NO CLUE what I said. I\’m sorry any moron can do your job, but not the case with mine.
Don\’t worry about me, I have a clue. You, however, need to buy a vowel. Sorry to be so harsh, but you haven\’t picked up on ONE single thing I posted. Try reading my posts again without all the bitterness you have towards your company.
I did read your post clearly and they came through loud and clear. You sarchasm didn\’t go unfound.
The Ins Co are not the only culprits and that shows how much YOU know about business otherwise you would have intelligently mentioned, what about?
There sdhouldn\’t be any problems with people receiving high bonus\’the point I wanted to make is that they are totally out of control and the reason the are is due to hedging. Do twice the work you used to? By the way I\’m not some phone answering person but who is to say that person doesn\’t work as hard as I do.
Accountability for the companies performance judges one on the stature of within.
I happened to be liason for hundreds of people at any given time throughout the day state law compliance regarding claims process and legalities.
So don\’t benounce my intelligence or knowledge otherwise your just a loud mouth that doesn\’t have a clue!
A bonus is a bonus. We have come to expect it as workers and it\’s the very thing that is causing increase three fold in some aspects of business.
So no I didn\’t miss your comments. I ignored it due to the ignorance of your reply
\”You sarchasm didn\’t go unfound.
So don\’t benounce my intelligence or knowledge otherwise your just a loud mouth that doesn\’t have a clue!\”
Consider the source, I say.
\”So no I didn\’t miss your comments. I ignored it due to the ignorance of your reply\”
Yeah, you did miss my comments. It is clear now (and was before but I thought I\’d give it a try) that you can\’t comprehend anything past \”Dick and Jane\”.
Again, consider the source. :)
Oops, by the way, I won\’t dare \”benounce\”* your intelligence.
*correct word is denounce.
And this person claims to be intelligent. =x (Seriously, folks, if you don\’t know the right word to use, just use another word instead!)
You got me on a typo. You get the gold star on your forhead today good girl!
Now you call yourself jewel should stone.
You are a smart *** that hasn\’t offered anything intelligent and don\’t belong on a forum like this.
Hope one day this subject comes to bite you!
HA HA HA HA HA HA HA HA HA HA HA HA HA HA
ROFL!!!!!
Please tell me that this has all been a joke.
You can\’t be…
but you are…
LOL!
PLJ-
When you say intelligent, you must mean stupid. I guess you\’re right. I haven\’t posted anything \”intelligent\” but you certainly have done so.
ROFL!
Thanks for playing!
\”So let me get this correct. You still pay insurance premiums to the insurance company. In addition to this you give them MORE money towards an account similar to a IRA,that they control,in the event you suffer a catastrophic loss.\”
PLJ-
You\’re the one that posted the above comment. You didn\’t \”get\” it from the beginning. You\’re certainly not going to get it now.
So sad… :(