Insurance is a highly competive business with hundreds of companies. I would have to say that just like any business, there are incompetent or dishonest adjusters and posters, like on this site constantly. Would you conspiracy posters just use a little common sense and do a little research. Look at the complaint ratios for insurers with those state insurance departments that post them. The percentages are miniscule. These ratios include justified and unjustified complaints. Your complaints about vast conspiracies are just so much garbage. Your are entitled to your opinion, but are simply wrong. That’s my opinion.
HEY, Consumer Federation of America. Listen up! Overcharging is what our local publicly regulated utility does. Baltimore Gas & Electric with the assistance of the Public Service Commission and the State legislature has stolen millions from residential customers over the past decade. Recently they charged customers interest and fees on a rate deferment plan they forced customers to accept. More recently they offered discounts to customers who purchased compact florescent light bulbs and then charged every customer a monthly service fee to cover the expense of the program. Want more? They also collected $528 million in estimated stranded cost that were never realized and still haven’t repaid customers. Insurance Companies are not scamming customers…it’s our own Government!
no one wants to deny the Bush Cheney cronies a fair profit. But as well, give them an inch, and they take a kilometer. No wonder everyone I know hates this regime and can’t wait for it to come to its end. Hopefully. we’ll still have a middle class when they head back to Texas.
The only one that makes sense here is Richard and Scott. The other two are obviouslly liberals caught in a Conservative world..So typically they shoot off their mouth before engaging brain.
Lets stick to the topic at hand.
OVERCHARGING DOES APPLY TO THE UTILITIES, WHO ARE SUPPOSED TO BE REGULATED BY “COMMISSIONS”. SOMETIMES IT SEEMS LIKE THE FOX IS GUARDING THE HENHOUSE, THOUGH! BUT REGULAR FREE-ENTERPRISE BUSINESSES SHOULD BE REGULATED BY COMPETITION. I CAN SHOP MY AUTO AND HOME INSURANCE AMONG HUNDREDS OF COMPANIES, SO UNLESS ALL COMPANIES MEET REGULARLY AND AGREE ON RATES, IF MY RATE IS TOO HIGH, I GO ELSEWHERE!
Rosie is right. These “watchdog” consumer groups are all under Bush and Cheney’s control. The consumer lobbyists are in the pocket of the Republicans. Time for change!
PS. Give Bush some credit, though. There were fewer hurricanes this year. Since Katrina was his fault, we should applaud his lack of storms in ’07.
It is normal for companies to use accumulated capital in a monopolistic way. It is normal for them to spend some of it legitmately and illegitmately (and of course via lobbying, a unique mixture of the two) to distort market forces in their favor and to resist complementary efforts by regulators to distort the market.
Markets, especially the big-capital distorted markets of the US, create chaos at home and worldwide as well as fomenting hyper-stimulated technological change, the necessity for two earner families, globalization and objectifcation of labor, resource exhaustion, pollution and often but not always efficient distribution of goods. They are probably a good thing compared to the creeping Stalinism of state-directed economies such as those that failed in Eastern Europe and even those that are succeeding in Asia, especially in China, but time will tell.
As Rosie points out, the current regime, which has hijacked our government and military to serve the interests of the oil industry (including the Saudi royal family and other Middle Eastern dictators with Chavez and the mullahs in Iraq getting an unexpected boost and free-ride), has let the deregulation thing go to an extreme. Chaos (and wars of choice) have been the result. Hence the complaints by other commenters about other types of service providers. The actions of the current regime are the flip-side of deregulation–control of the government by commercial enterprises. The Latin Americans, in a nice irony, refer to such behavior as “Neo-Liberalism” although it has been the liberal-haters and -baitersin the US that have pulled off this cute switch to a govenment that neither represents nor serves its own people.
The pendulum will be swinging back in the near future, no matter how much fulminating there is by ardent and learned MBAs, Walmart supporters, and Wall Street/banking elitists. “As ye sow, so shall ye reap”–to put it in terms of that book all these crooks have been hiding behind since 1994.
Anyway, remember the important take-away that these people want you to believe in is “that war is good business. Invest your child or spouse.” And have a nice weekend knowing the end (of the regime) is indeed and solely and entirely on constitutional grounds, near. One year, two weeks, one day—just like in Donnie Darko, except we can’t go back and change everything so this nightmare never happened.
Don’t count your chickens on this regime coming to an end on “constitutional grounds.” A secret plan is in place for a late term war with Iran that thru the expanded power of a war time President will keep this regime in power (much like what is going on in Pakistan).
I was interested to see what sort of comments this story elicited.
I was astonished to see that they melted down into political stonethrowing.
How Robert Hunter fits into Bush’s back pocket is some kind of leap.
Suffice it to say that Mr. Hunter has a personal axe to grind and his numbers don’t always add up.
This is a free country with free speech, but save the politicizing for a proper forum for it, because this isn’t it.
Let’s hear about how people feel about the insurance topics presented, not about their own narrow policical views to one side or the other.
If Hunter is the “Director of Insurance” for the CFA and a former commissioner, I sure hope they are self insured to avoid the companies getting excess profits from CFA. And if he was a commissioner (don’t know which state), he sure must have been an inept, impotent commissioner because the state’s regulations are basically the same. Where was he then?
Anyone who’s worked in the insurance industry for any period of time knows this guy is a kook. He has never made one valid point and relies on techno babble, mis-speak and bends the numbers to back into his fairy tale world of insurance hater(s). At least our industry is market driven, people have a choice of insurance carriers. The Libs must be getting desparate (what a choice..Hilary or Obama) when they choose to voice their political opinions and blame Bush in a stupid insurance blog such as this. Remember, the Libs support HACKs like Mr Hunter (he doesn’t work for free). Talk about a rip-off?
Premium for auto, 2 houses, 2M Umbrella, PAF…$1900 per year. Premium for the ability to watch TV and surf the Net via Comcast…$2160 per year! I hope that Hunter is right cause then my company would actually owe me money every year.
Here is an example of why either/or thinking is not going to get it and why broader perspective is required–even if Slim and others want us to be narrowly-focused little insure-bots serving Big Capital.
One example: Hunter was indeed insurance commissioner in Texas. His most important push was to end the state’s calculation of WC exp. mods’ and send that bit of bureaucracy to the NCCI. He made a comment on “useless filing cabinets filled with useless information.” Some long-term state employees specialized in this pursuit lost their employment. He then led and engineered the deregulation of WC rates in Texas (Surprise! that’s rights, folks!).
WC rates went into free fall helped along by a WC reform effort through which now Texas Senator Cornyn (the noted Bush lickspittle and mouthpiece) launched his political career. Hence, Hunter the Deregulator, Favorer of the Market, Tool of Business. (And also spawner of the Cornyn the conservative craven crazy). Go figure. Or, if we avoid either/or thinking, maybe Hunter the more efficient Regulator, the informed Favorer of the Market, the non-either/or Regulator…and Cornyn was just a bad joke on us all.
After 9-11, certainly a political event with worldwide implications (200 to 300 years of Western oil company interefence in the Middle East, just by the way and for example, or do we settle for the crazy idea floated by Bush/Rove/Cheney that “those people hate our freedowm,” whatever that was supposed to mean?), Texas WC rates stiffened. The ensuing several bad hurricane years kept a coastal hard market firmly in place so that WC was far more profitable for insurers than usual and unnecessarily costly for businesses and consuemrs of their products. Now, after a few good hurricane years, the coastal hard market is waning (more like collapsing) and WC rates are free-falling again. Reinsurance and windstorm writing are also bound up in much broader political matters, of course. I wonder how much of the new windstorm capacity is related to the impaired mortgage-backed securities…it is all related, Slim. That’s why we call it reality.
So actually, Hunter’s behavior has not been entirely market averse–to the contrary. He is just now playing his role as consumer advocate arguing to force personal lines rates down through political action. This is an entirely normal and expectable event–except perhaps in Putin’s Russia or in current China.
The economics of insurance underwriting cycles are never going to be understood widely so they will always remain a target for political action by either party as required to gain or maintain political power. (Hey, Slim, read Machiavelli’s The Prince or is that outside the approved insurance thought curriculum?). I am happy to see consumer advocates oppose Big Capital and its lap dog politicians–it wouldn’t be a good country without them.
The big picture, Slim–it’s called connecting the dots, ask Condi and Cheney and Bush–is that this government no longer represents or serves its people. Hey, even Lou Dobbs figured this one out. You seem to like that. Go figure. Too much sun on the brain in Arizona? Would Barry Goldwater recognize these “conservatives?”
Oh, well, I’ll just take your adivce and complete this worksheet to justify the IRPM and schedule credits that are needed to take this or that account away from someone else. Nothing like productive economic activity is there? Defoliating a victory garden sure works up an appetite!
Oh, so now it is against the law to make an excessive profit? Or is it just because insurance is regulated. I guess we are all going to jail? It will be crowded in there with all the Dr’s, hospital admin, Oil execs, trial attorneys, & government contractors.
The question is if there will be a middle class if the entitlement politics of the democrats get into power. Sorry, I know this is not relevant to the article but I see the American dream of achieving financial independence being eroded away by the entitlement attitude too many “American’s” now have.
You have been out of circulation a long time Media Mogul. Someone turn over your rock? You, Rosie and a few other nutters wouldn’t know how to keep a business in business for a month. Rosie, I know your posts are intended as jokes, but the joke is quite stale. Find a new place to bore people. Speaking of jokes, Robert Hunter is back and speaking nonsense.
Obviously, we are pleased to settle without costly and lengthy litigation,” said State Farm spokesman Fraser Engerman. He declined to comment further because terms of the settlement are confidential.
Documents and testimony that Bloomington, Ill.-based State Farm produced in previous court cases put clients in a good negotiating position, said William F. “Chip” Merlin, the policyholders’ attorney.
The material from State Farm officials indicated the company decided not to pay claims in areas hit by the storm surge, relying on policy language to deny claims without thorough investigations, Merlin said.
In cases in which wind and water combined to cause a loss, the 5th U.S. Circuit Court of Appeals has ruled policy language precludes coverage.
However, Merlin said last week that does not relieve insurance companies of their duty under Mississippi law to fully investigate the cause of a loss and pay for wind damage covered under an all-perils policy
C’mon now, you know Rosie makes her comments & then abandons the site by putting her head back in the sand. She doesn’t revisit to see what we all have to compliment her on….thoughtful, reasoned blogging. At least we know one village has an idiot (or two?).
Hunter is leading an educational group to explain the basic economic rule of caveat emptor. Thanks CFA for pointing out that insurance companies are out to make a profit.
Where it gets stupid is… when he and cronies expect the insurance companies and regulators to pay his type by the attorney hour to provide this information.
A 39-year-old Washington woman paralyzed from injuries caused in a car crash sued her insurer for denying coverage for surgery doctors agree could have prevented her paralysis.
Tara Sadler, a Yakima, Wash., resident and mother of two boys, filed the suit against State Farm Mutual Automobile Insurance Co., claiming the insurer denied her neurosurgeon’s decision to repair a severe neck injury caused in an auto accident on Feb. 29, 2004.
The complaint alleges State Farm denied Sadler’s personal injury protection (PIP) claim to maximize its profits. By the time the insurance company approved Sadler’s claim, Sadler was paralyzed.
“This is the worst case of PIP insurance abuse I have ever seen,” said Karen Koehler, an attorney with the law firm Stritmatter Kessler representing the Sadlers. “We have letters from Sadler’s doctors that confirm State Farm’s delay of the surgery is the reason for her paralysis.”
According to law firm, the day of the accident, Tara Sadler and her husband Donald Sadler, were driving their 1999 Volkswagen Beetle on North First Street in Yakima. Another vehicle improperly crossed several lanes of traffic while fleeing from the police. Donald Sadler, the driver, slammed the car’s breaks to avoid a collision. Tara Sadler, sitting in the passenger seat and wearing her seat belt, was thrown forward as the car came to a sudden stop.
After the accident, Sadler had neck and shoulder pain on the right side and arm numbness with tingling and loss of use. She saw her family physician, who ordered physical therapy for eight weeks, the law firm said. According to the complaint, in the days and weeks following the accident, Sadler’s condition worsened.
Sadler decided to see a chiropractor in Yakima who stopped the physical therapy, reviewed X-rays, and made arrangements for an MRI on her neck. The MRI indicated a significant disc protrusion in her neck with spinal cord compression and her chiropractor directed her to see a surgeon.
According to the complaint, on June 11, 2004, Sadler saw an orthopedic surgeon in Seattle who agreed that the injury warranted immediate attention and referred her to a neurosurgeon, Dr. Srinivasan, who concurred that surgery would alleviate most of her neck, shoulder, and arm ailments.
Dr. Srinivasan contacted State Farm to inform them of the need for the surgery.
Sadler, who did not have health insurance, believed the remaining $18,000 of PIP coverage she purchased from State Farm would be sufficient to pay for the surgery, the complaint details.
“When I saw Dr. Srinivasan, she said the sooner I get to surgery the better the outcome would be,” said Tara Sadler.
As Sadler returned home, Dr. Srinivasan called State Farm to advise them of the need for surgery and verify the availability of funds. State Farm replied that Sadler’s PIP benefits would be suspended and were not available for the needed surgery, court documents say.
“State Farm had absolutely no basis to deny Tara’s surgeon’s conclusion,” attorney Koehler said. “State Farm decided to gamble with Sadler’s health to try to save a buck.”
One week after hearing that she needed immediate surgery, State Farm sent a letter to Sadler that benefits were being withheld pending an involuntary medical evaluation scheduled for July 19 — almost five weeks later. Meanwhile her medical condition continued to deteriorate, the suit states.
“By this point, the paralysis had now moved down her leg. People were noticing she was dragging her right leg when she walked,” Koehler said. “She was frightened and did not know where to turn.”
Tara hired Yakima attorney Scott Brumback, whose office began calling State Farm sometimes on a daily basis, the law firm said. As a result, State Farm agreed to move the involuntary medical exam up by four days to July 15, 2004. The examiner, Dr. Gorman, M.D., confirmed Dr. Srinivasan’s prognosis and pronounced Sadler’s condition a medical emergency, court documents show.
According to court documents, after Dr. Gorman examined Sadler he called State Farm to report Sadler needed immediate surgery but was told the State Farm claims manager was out of the office.
It took until July 20, 2004 — 37 days since Sadler’s surgeon urged immediate action — for the State Farm insurance adjuster to file the appropriate paperwork and approve Sadler’s surgery.
On July 29, 2004, Dr. Srinivasan performed the surgery, but it was unsuccessful in fixing the damage caused by the accident that was worsened by the delays in treatment, court documents show. Sadler is now bound to using a wheelchair.
“It is nothing new for insurance companies to unjustly put profits over people by denying PIP claims,” Koehler said. “But never have I seen this level of callous incompetence. We believe had State Farm done the right thing and stood by its promise to Tara, she would be walking today.”
The CFA study estimates that retained earnings, or surplus, for the entire industry was $687 billion at the end of 2007, which it describes as “excessive by any legitimate measure.”
The group also calculates that the pure loss ratio, the actual amount of each premium dollar insurers pay to policyholders in benefits, was only 54.6 cents in 2007 and that over the past 20 years, this has declined from over 70 cents per premium dollar, “indicating a huge loss in the value of insurance to consumers
U.S. Senator Trent Lott, R- Miss., wants to require insurers to disclose property insurance coverage and noncoverage in plain language on the front page of each homeowner’s policy and has introduced a bill giving the Federal Trade Commission enforcement authority to see this is done.
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“Insurance policies are notoriously hard to read and understand because they’re primarily written in complex legalese,” Lott said in introducing his bill. “While insurance is a legal contract, it also is a product purchased by consumers. That’s why I believe every insurer should include a plain-English description of a homeowner’s policy, prominently displayed on the policy’s first page.”
Allstate adjuster walks thru & around our home. Documents issues… this is a result of flood, this is a result of wind-damage” Goes back to Allstate… waiting for check… it never arrives… but they have conveniently ‘REASSIGNED” the honest adjuster. the next guy, “the closer” is ruthless. doesn’t care what the first adjuster says, he doesn’t care… tells us he doesn’t care and then offers us about $3000. This is about a $50K difference!!! Then I hear from other friends, neighbors, co-workers… All of the insurance companies are doing the same thing! Tell me they’re not in it TOGETHER!!
Lates Homeowners Insurance cost for Folsom, La. 167,000 coverage 50,000 for outbuildings $1925.00 yr w/1/2 & 2%(windstorm&hail) as a deductible. There is no way that I’ll flood. That’s way more than $900 a year. The windstorm and hail is running $900 by itself. Auto insurance $570.00 a half..in the rural country.
Tens of thousands of drivers across the nation have recently received notices from state attorney generals with some shocking news: used cars they purchased in good faith were actually salvage cars that had not had their titles changed, due to a “mistake” by State Farm Insurance. In some noticed letters, such as those sent in Pennsylvania, the consumer is advised that because of the glitch, the vehicle certificate of title must be “frozen” pending return to Pennsylvania Department of Transportation for issuance of a new salvage title. Consumers are then encouraged to accept a partial cash reimbursement for the loss of value, under a schedule based upon the purchase price paid for the car. Even if a consumer accepts and signs, the amount to be received is described as “an approximate”, though the consumer is giving up their right to pursue other remedies. The amount offered is part of an agreement between attorney generals and State Farm, requiring the insurance carrier to pay millions of dollars directly to the attorney generals for “legal fees and expenses”.
The Pennsylvania letter notifies consumers that by accepting, they are required to disclose the salvage history to any subsequent buyer of the vehicle, but does not indicate:
that salvage title cars are nearly worthless in the used car market;
that the amount being paid under the plan is but a small fraction of the actual losses related to the change in classification of title;
that mechanical or other charges incurred by the consumer as a result of the salvage history will not be reimbursed;
that the consumer is not required to accept the amount and may do much better by filing suit on their own against State Farm or their dealer;
Whether any of the “total loss” vehicles pose a danger to the driver or public from continued use.
The Automotive Consumer Advocacy and Lemon Law Firm of Kimmel & Silverman believes these proposals unfairly favor State Farm Insurance by limiting liability for its conduct to a small percentage of the true losses consumers have suffered by the “mistake”, in ways that the attorney generals may not have recognized or appreciated when negotiating the settlement. If you purchased a State Farm salvage car and have recently found out about its history, we’d like to hear from you.
like any business whether small or not, that company is striving to make a profit and grow. they then pass either the savings back to the consumer or put it back into their pockets for later expenses. i work for a company that tries to keep a 4% profit, but when mother nature is being a blessing, that profit can definately increase. if the claims filed are less frequent, again, increase of profit. the company also uses old funds (money available but not for solvency of claims), is invested into the market allowing the company to make some more money to pay for expenses. we are so focuses in today’s society we forget the businesses are supposed to bring profit. that enables companies to hire, expand, provide higher wages, etc – which in turn creates a better economy. now if you really want to look at things differently, let’s take a look at a different industry.
oil: whose making money here? the oil guru’s in the mideast and the big companies here stateside. we allow them to keep upping the ante of the oil and that transfers back to the gas. so we pay more at the pump and they get awfully richer. nothing stopped them. if you own a vehicle or take public transportation, you need a form of gasoline.
power: most of us can only take it from the local source. run by your local power company in-line with a contract with the local government. is there competition in this? no! why? there is no way to create a separate power into the city for each and every house – so a monopoly! oops – sounds like that is against the anti-trust law! afterall, is that we wound up doing with the telephone? now there is a way to give folks a choice there. funny, don’t they all use the same phone line?
government: why is it that we all blame Bush and Chaney? i think most of you forgotten that we need to look at the local government and then the current us house of rep and senators. most of them have been in office for a long time. in our current business, it has been made that you have to retire after the age of 62 (if memory serves me correctly). yet, if you look into the congress, how many are actually older? how many of them really know the current generation? how many of them can forsee the future? so, why do they want to know about steroid use within BASEBALL? baseball is not a national security risk. it is a company of its own and is trying to regulate itself. baseball is a sport – the congress needs to look at what it can do to help our fellow americans – baseball is entertainment!
finally, remember that one bad apple does not mean that the bushel is bad. i noticed on several earlier blogs, state farm is mentioned. remember the same goes for drivers as well, if one driver is reckless, does that mean we all are? NO! same thing when it comes to companies. same goes for the US Government – it starts locally and goes up.
I work for an insurance company and can’t tell you the number of times people aren’t interested in switching even if it saves them hundreds, because of blind loyalty. True story. All I can say is if people want to complain about prices, they need to shop a bit. Don’t blame the companies, we are Americans and when companies lose customers they have to adjust or suffer. People think it is easier to stay than take the 20 minutes to shop and save so I have no sympathy for those complaining about profits. This is America, not China.
VERY GOOD MESSAGE, WUDCHUCK! BUSINESSES ARE BUSINESSES, AND SHOULD BE PROFITABLE. OTHERWISE, WHY BOTHER? THE REAL PROBLEM IS POLITICIANS SUPPORTED BY BIG BUSINESSES AND PACS WHO THEN ARE REWARDED BY THOSE POLITICIANS. WE NEED TO SEVERELY LIMIT WHAT YOU CAN SPEND TO GET ELECTED—LOOK AT THE CURRENT PRIMARY CANDIDATES!
How can car insurers in this state,nj, take reductions of hundreds of dollars in their ads if they didn’t overcharge to begin with. Where is the savngs coming from/ Credit etc have been around awhile and I’m no better a driver today than I was 2 yrs. ago.
before we villainize another carrier with incomplete info, can we get all the facts here? If this is a Washington policy, most carry $10000 PIP, right? Wouldn’t a large chunk of that coverage already be gone by the time the victim saw the specialist (and after tests, including MRI, not cheap) who recommended surgery? I have yet to see anyone show what level of coverage this lady had; all I see is she ‘thought’ she had $18000 left; ok, $18000 of what? You don’t know how many times I’ve had phone calls from medical providers telling me they won’t perform something unless I approve it; no, we don’t preapprove. If its necessary and related, send the paperwork to prove same.
You betcha’ they are overcharging. I had one company increase a standard home by $78,000 in one year ! They said it was the inflation factor! Wow -you’d better tell Bush, cause he thinks we have NO INFLATION. I am losing customers over this. The insurance companies are RICHER than some small nations !
again, why are u blaming bush? have you shopped around for lower insurance? if not, then you are allowing them to charge at a higher price. bush can not control the individual companies. that is what capitalism is all about – if you owned a company you’d want to make a good profit. the govn’t can’t control a company, it can regulate that we all play fair (at least supposed to be fair). folks, take charge of what you have – take responsibility of your actions. if you think they are charging more, then become self-insured. retain your own risk. but remember, only way for you to take control is for you to do it – stop blaming others!
As much as I don’t like Bush I really don’t see how any of this is his fault. I agree with wudchuck on this; if you don’t like where you’re at, change. I saved 15% by not switching to GEICO. And if you feel you’ve been grossly underpaid, get a lawyer. I don’t like saying that but it is a valid option if you feel you’ve been stiffed on a claim.
As for profits – I love ’em. I do think some profits are grossly disconnected from market reality and some industries should have a little bit more of a heart; but then I look at the stocks and funds in my IRA and 401(k) and re-think my position. The market will correct itself if given time.
don’t we actually do the same thing when are looking for gas for our vehicles? not all gas station prices are the same. i have even seen 2 of them compete for customers and keep lowering their price, til it was too low and the station became an overgrown parking lot waiting for folks to get in. these stations know how low they can go. remember the law of supply and demand. if it’s a travelled road, and you want more customers in the store – you’ll lower that gas price a few cents (in many cases they make it back up on the purchase in the store).
insurance – tad different in that your not spending gas only a few minutes of your time to call an 800 number (so this is free) and get a quote (again, free, not heard it costing you a single penny for one). if it saves you over $50 or more every 6 months, that is a savings over time. loyalty? if that were so, then why have not gotten more oil from our own country. we import over 80%. there are a variety of different reasons to shop besides price. but that is a decision you have to make. the almighty dollar can present a hard bargaining chip in this day. that $50 dollars in some cases is a couple of tanks of gas, or even taking your spouse out on a date or pay an extra bill or two.
so if you complain, remember it’s not the us government fault (bush or chaney) – they don’t control your spending dollars – you do! matter of fact, i don’t control your spending thrifts either. you make an actual conscious decision on what you purchase and what price.
I can’t shop, I don’t have time, I have to work so hard because of Bush/Cheney that I don’t have time to hunt for car insurance; I buy mine thru the state, it gets assigned for me so I figure its the best price I can get; I get full coverage, but not any of those added extra coverages or limits they try to sell, I still to what I have to have from my state.
Regarding oil, it just makes me mad, we have oil everywhere, but we keep buying it from bad people; Bush/Cheney won’t let us drill offshort, won’t let us go to anwar, north pole, or whereever to get oil. So we keep getting oil from terror guys and Bush tells us we should open up a windfarm and grow grass on our roofs. I’m fed up, this profit proves that Bush does not drive a car or he would be fed up with insurance, too. If he drove a car, he would do something about oil and insurance prices.
no time? wait a minute, how many commercials do you see call us now? 24 hours we are open for a call. Accessible via the internet. sounds like just an excuse to not shop around – just like the excuse to blame others for you not doing anything. did you at least vote? or did you find an excuse not to do that? you can lift a phone – because you accessing this via the www. don’t tell me you can’t find the internet access because you have done the blogging here…
so stop blaming chaney or bush because you fear your own actions is hindering the situation!!!!
Again off topic, but Rosie and friends need to read The Forgotten Man, or the new book Liberal Fascism. Today’s democrats running for power want to do things that will wipe out the middle class. U.S. sovereignty will be ceded to some world authority. Taxes will soar. The rich with connections to the power structure will find ways around the tax burden, while other will leave the U.S. and/or take their money elsewhere. Unemployment will rise, the lower class will grown, and the middle class will slowly by stamped out. The economy will be in deep doodoo. I don’t even want to think what the price of gas will be.
As for the east, I want to say come back when you have an actual understanding of it, but I know you don’t care. I’m inclined to believe that your not so naive that you don’t know what is going on, or that you honestly believe it is something other than what it is, or that you really believe the extremists would leave you alone. Either way, I know you don’t care. You just want to get a liberal democrat elected.
While I personally believe the effort to transform the middle east is the shining moment of the Bush presidency, I believe we should reject any candidate that is even remotely close to another Bush, in addition to status quo and liberal candidates. Bush is among a growing group of republicans who seemingly wish to take us to the same destination as liberals do, just at a slower pace. He has been a disaster on a number of issues because he has embraced a lot of the nanny state and sovereignty killing stuff that the left is looking for.
Now to throw in something on topic. I have no problem with making a profit. For the most part, a free market can take care of itself. When this doesn’t occur, there are legal remedies. The company I work for is not the cheapest carrier on the block, but if they were too high, they would lose enough business to force them to drop prices. Generating a profit allows them to build a better business by having more to invest in new technology. They can attract better employees by paying them more, and in turn providing better service. Having higher rates and being very strict may also help them refine their clientele, and weed out potential problems.
I agree that people need to shop for new coverage if they feel they are paying too much…i have done it a couple of times in the past 3.5 years and have seen my rates go down considerably. The first time I shopped, I switched insurance companies….The second time it was a matter of staying with the company but finding an agent who was willing to look into getting me better rates and he did so I left the agent who practically hung up on me everytime I called her to ask her why my rate was so high…guess she should have worked a little harder!
IF the profits went to hiring better people and new technology, I could understand a bit of an increase. But when I read about a CEO bragging that he and a few other ‘key’ personnel are taking home multi million dollar bonuses while wages within the company are stagnated, where should I ‘understand’ me paying their ridiculous bonuses?
I’m in Fla- no shopping for coverage here. Nationwide parent company is one of those companies that does the most bragging about profits while pushing up rates 325% – because of losses. Well, lose the billion dollars that 5 or 6 of the directors took home and the rates would correct themselves.
The one thing that keeps coming up is that our gov’t is now a purely for profit agency for the people that we have put there. Capitilism has replaced Patriotism in our dictionary- and if anyone thinks that will correct itself must be hanging out with Rosie these days.
We need a gov’t that understands that our priority should be here. Not converting the free world to Christianity or feeding every nation that can’t seem to figure out how to use birth control. Or handing out money and services to anybody that manages to find their way over our borders. We can’t feed, provide medical care, or sufficient employment to millions of people who are Americans. We are no longer capable of being the worldwide police department.
i think u need to rethink that thought dawn. patriotism did not build the economy. patriotism is for standing with our military whom protect our rights as citizens of our country. our beliefs to be a free american with the bill of rights and the constitution to give us civil liberties. capitalism is for business whom prosper because we earn money and then spend it whether for needed items or splendor. patriotism was shown when 9/11 happened, dec 7 – pearl harbor and many more days like that show we stand together as a whole. this act does not translate into business. if you had a business you would want profit as well. you would want folks coming to your place purchasing items. but if you let your competitor to make more money and give that to its management folks instead of the actual worker, then you have not made it a competative market. you did not choose, you let it choose you. so don’t come saying you could not make a choice when you can. remember, that if the place you live is making harder to live because of the cost of living, then move to another or search for a better service provider. just remember, it was not the goverment who chose your first insurance company.
Our entire gov’t body will put profit about American any day of the week. Patriotism was after 9/11 for the people who stood together and cried for vengeance and justice against those that killed innocent victims. Capitialism has taken over that cry. We stood as a nation for freedom in 2001. Now we stand under those that stand for the $$$$$. The private profit has corrupted everything. As long as those in power have a dollar to gain, nothing will change. Be it oil, private armies, insurance, drugs, health care, any industry that our elected officials have monatary gain from.
If we stood for our army, Blackwater wouldn’t be making 4 times as much and have all the best equipment. Our soldiers should have the money, equipment, and support that our tax dollars are giving Blackwater. Capitalism. Plain and simple. War is profit. Sickness is profit. Oil prices are profit – not just for the Mid East.
YES, DAWN, I AGREE THAT SOME COMPANIES REWARD THEIR CEO’S TO MUCH! BUT THOSE WORKERS HAVE THE FREEDOM TO WORK ELSEWHERE, AND THOSE CUSTOMERS CAN SHOP THEIR BUSINESS ELSEWHERE. UNFORTUNATELY IN FLORIDA YOUR STATE IS NOT FRIENDLY TO INSURANCE COMPANIES SO I UNDERSTAND SOME NO LONGER ARE SELLING INSURANCE IN YOUR STATE, WHICH LIMITS YOUR CHOICES. MAYBE YOU SHOULD VOTE FOR PEOPLE WHO LET FREE ENTERPRISE DETERMINE PRICES!
Insurance is a highly competive business with hundreds of companies. I would have to say that just like any business, there are incompetent or dishonest adjusters and posters, like on this site constantly. Would you conspiracy posters just use a little common sense and do a little research. Look at the complaint ratios for insurers with those state insurance departments that post them. The percentages are miniscule. These ratios include justified and unjustified complaints. Your complaints about vast conspiracies are just so much garbage. Your are entitled to your opinion, but are simply wrong. That’s my opinion.
HEY, Consumer Federation of America. Listen up! Overcharging is what our local publicly regulated utility does. Baltimore Gas & Electric with the assistance of the Public Service Commission and the State legislature has stolen millions from residential customers over the past decade. Recently they charged customers interest and fees on a rate deferment plan they forced customers to accept. More recently they offered discounts to customers who purchased compact florescent light bulbs and then charged every customer a monthly service fee to cover the expense of the program. Want more? They also collected $528 million in estimated stranded cost that were never realized and still haven’t repaid customers. Insurance Companies are not scamming customers…it’s our own Government!
no one wants to deny the Bush Cheney cronies a fair profit. But as well, give them an inch, and they take a kilometer. No wonder everyone I know hates this regime and can’t wait for it to come to its end. Hopefully. we’ll still have a middle class when they head back to Texas.
Let us not forget how the oil companies are screwing us every which way from Sunday!
The CFA has never produced a legitimate study on the insurance industry. This is just more of the same old unsubstantiated drivel.
The only one that makes sense here is Richard and Scott. The other two are obviouslly liberals caught in a Conservative world..So typically they shoot off their mouth before engaging brain.
Lets stick to the topic at hand.
OVERCHARGING DOES APPLY TO THE UTILITIES, WHO ARE SUPPOSED TO BE REGULATED BY “COMMISSIONS”. SOMETIMES IT SEEMS LIKE THE FOX IS GUARDING THE HENHOUSE, THOUGH! BUT REGULAR FREE-ENTERPRISE BUSINESSES SHOULD BE REGULATED BY COMPETITION. I CAN SHOP MY AUTO AND HOME INSURANCE AMONG HUNDREDS OF COMPANIES, SO UNLESS ALL COMPANIES MEET REGULARLY AND AGREE ON RATES, IF MY RATE IS TOO HIGH, I GO ELSEWHERE!
Rosie is right. These “watchdog” consumer groups are all under Bush and Cheney’s control. The consumer lobbyists are in the pocket of the Republicans. Time for change!
PS. Give Bush some credit, though. There were fewer hurricanes this year. Since Katrina was his fault, we should applaud his lack of storms in ’07.
It is normal for companies to use accumulated capital in a monopolistic way. It is normal for them to spend some of it legitmately and illegitmately (and of course via lobbying, a unique mixture of the two) to distort market forces in their favor and to resist complementary efforts by regulators to distort the market.
Markets, especially the big-capital distorted markets of the US, create chaos at home and worldwide as well as fomenting hyper-stimulated technological change, the necessity for two earner families, globalization and objectifcation of labor, resource exhaustion, pollution and often but not always efficient distribution of goods. They are probably a good thing compared to the creeping Stalinism of state-directed economies such as those that failed in Eastern Europe and even those that are succeeding in Asia, especially in China, but time will tell.
As Rosie points out, the current regime, which has hijacked our government and military to serve the interests of the oil industry (including the Saudi royal family and other Middle Eastern dictators with Chavez and the mullahs in Iraq getting an unexpected boost and free-ride), has let the deregulation thing go to an extreme. Chaos (and wars of choice) have been the result. Hence the complaints by other commenters about other types of service providers. The actions of the current regime are the flip-side of deregulation–control of the government by commercial enterprises. The Latin Americans, in a nice irony, refer to such behavior as “Neo-Liberalism” although it has been the liberal-haters and -baitersin the US that have pulled off this cute switch to a govenment that neither represents nor serves its own people.
The pendulum will be swinging back in the near future, no matter how much fulminating there is by ardent and learned MBAs, Walmart supporters, and Wall Street/banking elitists. “As ye sow, so shall ye reap”–to put it in terms of that book all these crooks have been hiding behind since 1994.
Anyway, remember the important take-away that these people want you to believe in is “that war is good business. Invest your child or spouse.” And have a nice weekend knowing the end (of the regime) is indeed and solely and entirely on constitutional grounds, near. One year, two weeks, one day—just like in Donnie Darko, except we can’t go back and change everything so this nightmare never happened.
You can’t say Donnie Darko!
Don’t count your chickens on this regime coming to an end on “constitutional grounds.” A secret plan is in place for a late term war with Iran that thru the expanded power of a war time President will keep this regime in power (much like what is going on in Pakistan).
I was interested to see what sort of comments this story elicited.
I was astonished to see that they melted down into political stonethrowing.
How Robert Hunter fits into Bush’s back pocket is some kind of leap.
Suffice it to say that Mr. Hunter has a personal axe to grind and his numbers don’t always add up.
This is a free country with free speech, but save the politicizing for a proper forum for it, because this isn’t it.
Let’s hear about how people feel about the insurance topics presented, not about their own narrow policical views to one side or the other.
If Hunter is the “Director of Insurance” for the CFA and a former commissioner, I sure hope they are self insured to avoid the companies getting excess profits from CFA. And if he was a commissioner (don’t know which state), he sure must have been an inept, impotent commissioner because the state’s regulations are basically the same. Where was he then?
Anyone who’s worked in the insurance industry for any period of time knows this guy is a kook. He has never made one valid point and relies on techno babble, mis-speak and bends the numbers to back into his fairy tale world of insurance hater(s). At least our industry is market driven, people have a choice of insurance carriers. The Libs must be getting desparate (what a choice..Hilary or Obama) when they choose to voice their political opinions and blame Bush in a stupid insurance blog such as this. Remember, the Libs support HACKs like Mr Hunter (he doesn’t work for free). Talk about a rip-off?
anything that makes Rosie ill sounds great; bring it on…let’s roll in our profits…hee…hee…hee…hee.
Premium for auto, 2 houses, 2M Umbrella, PAF…$1900 per year. Premium for the ability to watch TV and surf the Net via Comcast…$2160 per year! I hope that Hunter is right cause then my company would actually owe me money every year.
Here is an example of why either/or thinking is not going to get it and why broader perspective is required–even if Slim and others want us to be narrowly-focused little insure-bots serving Big Capital.
One example: Hunter was indeed insurance commissioner in Texas. His most important push was to end the state’s calculation of WC exp. mods’ and send that bit of bureaucracy to the NCCI. He made a comment on “useless filing cabinets filled with useless information.” Some long-term state employees specialized in this pursuit lost their employment. He then led and engineered the deregulation of WC rates in Texas (Surprise! that’s rights, folks!).
WC rates went into free fall helped along by a WC reform effort through which now Texas Senator Cornyn (the noted Bush lickspittle and mouthpiece) launched his political career. Hence, Hunter the Deregulator, Favorer of the Market, Tool of Business. (And also spawner of the Cornyn the conservative craven crazy). Go figure. Or, if we avoid either/or thinking, maybe Hunter the more efficient Regulator, the informed Favorer of the Market, the non-either/or Regulator…and Cornyn was just a bad joke on us all.
After 9-11, certainly a political event with worldwide implications (200 to 300 years of Western oil company interefence in the Middle East, just by the way and for example, or do we settle for the crazy idea floated by Bush/Rove/Cheney that “those people hate our freedowm,” whatever that was supposed to mean?), Texas WC rates stiffened. The ensuing several bad hurricane years kept a coastal hard market firmly in place so that WC was far more profitable for insurers than usual and unnecessarily costly for businesses and consuemrs of their products. Now, after a few good hurricane years, the coastal hard market is waning (more like collapsing) and WC rates are free-falling again. Reinsurance and windstorm writing are also bound up in much broader political matters, of course. I wonder how much of the new windstorm capacity is related to the impaired mortgage-backed securities…it is all related, Slim. That’s why we call it reality.
So actually, Hunter’s behavior has not been entirely market averse–to the contrary. He is just now playing his role as consumer advocate arguing to force personal lines rates down through political action. This is an entirely normal and expectable event–except perhaps in Putin’s Russia or in current China.
The economics of insurance underwriting cycles are never going to be understood widely so they will always remain a target for political action by either party as required to gain or maintain political power. (Hey, Slim, read Machiavelli’s The Prince or is that outside the approved insurance thought curriculum?). I am happy to see consumer advocates oppose Big Capital and its lap dog politicians–it wouldn’t be a good country without them.
The big picture, Slim–it’s called connecting the dots, ask Condi and Cheney and Bush–is that this government no longer represents or serves its people. Hey, even Lou Dobbs figured this one out. You seem to like that. Go figure. Too much sun on the brain in Arizona? Would Barry Goldwater recognize these “conservatives?”
Oh, well, I’ll just take your adivce and complete this worksheet to justify the IRPM and schedule credits that are needed to take this or that account away from someone else. Nothing like productive economic activity is there? Defoliating a victory garden sure works up an appetite!
Right on brother Chad!
Oh, so now it is against the law to make an excessive profit? Or is it just because insurance is regulated. I guess we are all going to jail? It will be crowded in there with all the Dr’s, hospital admin, Oil execs, trial attorneys, & government contractors.
You can’t say lickspittle.
The question is if there will be a middle class if the entitlement politics of the democrats get into power. Sorry, I know this is not relevant to the article but I see the American dream of achieving financial independence being eroded away by the entitlement attitude too many “American’s” now have.
After 40 years in the insurance industry I still don’t understand why it is believed to be a not for profit business.
You have been out of circulation a long time Media Mogul. Someone turn over your rock? You, Rosie and a few other nutters wouldn’t know how to keep a business in business for a month. Rosie, I know your posts are intended as jokes, but the joke is quite stale. Find a new place to bore people. Speaking of jokes, Robert Hunter is back and speaking nonsense.
Obviously, we are pleased to settle without costly and lengthy litigation,” said State Farm spokesman Fraser Engerman. He declined to comment further because terms of the settlement are confidential.
Documents and testimony that Bloomington, Ill.-based State Farm produced in previous court cases put clients in a good negotiating position, said William F. “Chip” Merlin, the policyholders’ attorney.
The material from State Farm officials indicated the company decided not to pay claims in areas hit by the storm surge, relying on policy language to deny claims without thorough investigations, Merlin said.
In cases in which wind and water combined to cause a loss, the 5th U.S. Circuit Court of Appeals has ruled policy language precludes coverage.
However, Merlin said last week that does not relieve insurance companies of their duty under Mississippi law to fully investigate the cause of a loss and pay for wind damage covered under an all-perils policy
C’mon now, you know Rosie makes her comments & then abandons the site by putting her head back in the sand. She doesn’t revisit to see what we all have to compliment her on….thoughtful, reasoned blogging. At least we know one village has an idiot (or two?).
Hunter is leading an educational group to explain the basic economic rule of caveat emptor. Thanks CFA for pointing out that insurance companies are out to make a profit.
Where it gets stupid is… when he and cronies expect the insurance companies and regulators to pay his type by the attorney hour to provide this information.
A 39-year-old Washington woman paralyzed from injuries caused in a car crash sued her insurer for denying coverage for surgery doctors agree could have prevented her paralysis.
Tara Sadler, a Yakima, Wash., resident and mother of two boys, filed the suit against State Farm Mutual Automobile Insurance Co., claiming the insurer denied her neurosurgeon’s decision to repair a severe neck injury caused in an auto accident on Feb. 29, 2004.
The complaint alleges State Farm denied Sadler’s personal injury protection (PIP) claim to maximize its profits. By the time the insurance company approved Sadler’s claim, Sadler was paralyzed.
“This is the worst case of PIP insurance abuse I have ever seen,” said Karen Koehler, an attorney with the law firm Stritmatter Kessler representing the Sadlers. “We have letters from Sadler’s doctors that confirm State Farm’s delay of the surgery is the reason for her paralysis.”
According to law firm, the day of the accident, Tara Sadler and her husband Donald Sadler, were driving their 1999 Volkswagen Beetle on North First Street in Yakima. Another vehicle improperly crossed several lanes of traffic while fleeing from the police. Donald Sadler, the driver, slammed the car’s breaks to avoid a collision. Tara Sadler, sitting in the passenger seat and wearing her seat belt, was thrown forward as the car came to a sudden stop.
After the accident, Sadler had neck and shoulder pain on the right side and arm numbness with tingling and loss of use. She saw her family physician, who ordered physical therapy for eight weeks, the law firm said. According to the complaint, in the days and weeks following the accident, Sadler’s condition worsened.
Sadler decided to see a chiropractor in Yakima who stopped the physical therapy, reviewed X-rays, and made arrangements for an MRI on her neck. The MRI indicated a significant disc protrusion in her neck with spinal cord compression and her chiropractor directed her to see a surgeon.
According to the complaint, on June 11, 2004, Sadler saw an orthopedic surgeon in Seattle who agreed that the injury warranted immediate attention and referred her to a neurosurgeon, Dr. Srinivasan, who concurred that surgery would alleviate most of her neck, shoulder, and arm ailments.
Dr. Srinivasan contacted State Farm to inform them of the need for the surgery.
Sadler, who did not have health insurance, believed the remaining $18,000 of PIP coverage she purchased from State Farm would be sufficient to pay for the surgery, the complaint details.
“When I saw Dr. Srinivasan, she said the sooner I get to surgery the better the outcome would be,” said Tara Sadler.
As Sadler returned home, Dr. Srinivasan called State Farm to advise them of the need for surgery and verify the availability of funds. State Farm replied that Sadler’s PIP benefits would be suspended and were not available for the needed surgery, court documents say.
“State Farm had absolutely no basis to deny Tara’s surgeon’s conclusion,” attorney Koehler said. “State Farm decided to gamble with Sadler’s health to try to save a buck.”
One week after hearing that she needed immediate surgery, State Farm sent a letter to Sadler that benefits were being withheld pending an involuntary medical evaluation scheduled for July 19 — almost five weeks later. Meanwhile her medical condition continued to deteriorate, the suit states.
“By this point, the paralysis had now moved down her leg. People were noticing she was dragging her right leg when she walked,” Koehler said. “She was frightened and did not know where to turn.”
Tara hired Yakima attorney Scott Brumback, whose office began calling State Farm sometimes on a daily basis, the law firm said. As a result, State Farm agreed to move the involuntary medical exam up by four days to July 15, 2004. The examiner, Dr. Gorman, M.D., confirmed Dr. Srinivasan’s prognosis and pronounced Sadler’s condition a medical emergency, court documents show.
According to court documents, after Dr. Gorman examined Sadler he called State Farm to report Sadler needed immediate surgery but was told the State Farm claims manager was out of the office.
It took until July 20, 2004 — 37 days since Sadler’s surgeon urged immediate action — for the State Farm insurance adjuster to file the appropriate paperwork and approve Sadler’s surgery.
On July 29, 2004, Dr. Srinivasan performed the surgery, but it was unsuccessful in fixing the damage caused by the accident that was worsened by the delays in treatment, court documents show. Sadler is now bound to using a wheelchair.
“It is nothing new for insurance companies to unjustly put profits over people by denying PIP claims,” Koehler said. “But never have I seen this level of callous incompetence. We believe had State Farm done the right thing and stood by its promise to Tara, she would be walking today.”
The CFA study estimates that retained earnings, or surplus, for the entire industry was $687 billion at the end of 2007, which it describes as “excessive by any legitimate measure.”
The group also calculates that the pure loss ratio, the actual amount of each premium dollar insurers pay to policyholders in benefits, was only 54.6 cents in 2007 and that over the past 20 years, this has declined from over 70 cents per premium dollar, “indicating a huge loss in the value of insurance to consumers
U.S. Senator Trent Lott, R- Miss., wants to require insurers to disclose property insurance coverage and noncoverage in plain language on the front page of each homeowner’s policy and has introduced a bill giving the Federal Trade Commission enforcement authority to see this is done.
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“Insurance policies are notoriously hard to read and understand because they’re primarily written in complex legalese,” Lott said in introducing his bill. “While insurance is a legal contract, it also is a product purchased by consumers. That’s why I believe every insurer should include a plain-English description of a homeowner’s policy, prominently displayed on the policy’s first page.”
Allstate adjuster walks thru & around our home. Documents issues… this is a result of flood, this is a result of wind-damage” Goes back to Allstate… waiting for check… it never arrives… but they have conveniently ‘REASSIGNED” the honest adjuster. the next guy, “the closer” is ruthless. doesn’t care what the first adjuster says, he doesn’t care… tells us he doesn’t care and then offers us about $3000. This is about a $50K difference!!! Then I hear from other friends, neighbors, co-workers… All of the insurance companies are doing the same thing! Tell me they’re not in it TOGETHER!!
They’re not in it together.
oR ARE THEY
Lates Homeowners Insurance cost for Folsom, La. 167,000 coverage 50,000 for outbuildings $1925.00 yr w/1/2 & 2%(windstorm&hail) as a deductible. There is no way that I’ll flood. That’s way more than $900 a year. The windstorm and hail is running $900 by itself. Auto insurance $570.00 a half..in the rural country.
Tens of thousands of drivers across the nation have recently received notices from state attorney generals with some shocking news: used cars they purchased in good faith were actually salvage cars that had not had their titles changed, due to a “mistake” by State Farm Insurance. In some noticed letters, such as those sent in Pennsylvania, the consumer is advised that because of the glitch, the vehicle certificate of title must be “frozen” pending return to Pennsylvania Department of Transportation for issuance of a new salvage title. Consumers are then encouraged to accept a partial cash reimbursement for the loss of value, under a schedule based upon the purchase price paid for the car. Even if a consumer accepts and signs, the amount to be received is described as “an approximate”, though the consumer is giving up their right to pursue other remedies. The amount offered is part of an agreement between attorney generals and State Farm, requiring the insurance carrier to pay millions of dollars directly to the attorney generals for “legal fees and expenses”.
The Pennsylvania letter notifies consumers that by accepting, they are required to disclose the salvage history to any subsequent buyer of the vehicle, but does not indicate:
that salvage title cars are nearly worthless in the used car market;
that the amount being paid under the plan is but a small fraction of the actual losses related to the change in classification of title;
that mechanical or other charges incurred by the consumer as a result of the salvage history will not be reimbursed;
that the consumer is not required to accept the amount and may do much better by filing suit on their own against State Farm or their dealer;
Whether any of the “total loss” vehicles pose a danger to the driver or public from continued use.
The Automotive Consumer Advocacy and Lemon Law Firm of Kimmel & Silverman believes these proposals unfairly favor State Farm Insurance by limiting liability for its conduct to a small percentage of the true losses consumers have suffered by the “mistake”, in ways that the attorney generals may not have recognized or appreciated when negotiating the settlement. If you purchased a State Farm salvage car and have recently found out about its history, we’d like to hear from you.
garbage and lots of greed
CFA & Robert Hunter’s time has passed. Most now know their funds come from Trial Lawyers & the Ralph Nader loonies.
like any business whether small or not, that company is striving to make a profit and grow. they then pass either the savings back to the consumer or put it back into their pockets for later expenses. i work for a company that tries to keep a 4% profit, but when mother nature is being a blessing, that profit can definately increase. if the claims filed are less frequent, again, increase of profit. the company also uses old funds (money available but not for solvency of claims), is invested into the market allowing the company to make some more money to pay for expenses. we are so focuses in today’s society we forget the businesses are supposed to bring profit. that enables companies to hire, expand, provide higher wages, etc – which in turn creates a better economy. now if you really want to look at things differently, let’s take a look at a different industry.
oil: whose making money here? the oil guru’s in the mideast and the big companies here stateside. we allow them to keep upping the ante of the oil and that transfers back to the gas. so we pay more at the pump and they get awfully richer. nothing stopped them. if you own a vehicle or take public transportation, you need a form of gasoline.
power: most of us can only take it from the local source. run by your local power company in-line with a contract with the local government. is there competition in this? no! why? there is no way to create a separate power into the city for each and every house – so a monopoly! oops – sounds like that is against the anti-trust law! afterall, is that we wound up doing with the telephone? now there is a way to give folks a choice there. funny, don’t they all use the same phone line?
government: why is it that we all blame Bush and Chaney? i think most of you forgotten that we need to look at the local government and then the current us house of rep and senators. most of them have been in office for a long time. in our current business, it has been made that you have to retire after the age of 62 (if memory serves me correctly). yet, if you look into the congress, how many are actually older? how many of them really know the current generation? how many of them can forsee the future? so, why do they want to know about steroid use within BASEBALL? baseball is not a national security risk. it is a company of its own and is trying to regulate itself. baseball is a sport – the congress needs to look at what it can do to help our fellow americans – baseball is entertainment!
finally, remember that one bad apple does not mean that the bushel is bad. i noticed on several earlier blogs, state farm is mentioned. remember the same goes for drivers as well, if one driver is reckless, does that mean we all are? NO! same thing when it comes to companies. same goes for the US Government – it starts locally and goes up.
I work for an insurance company and can’t tell you the number of times people aren’t interested in switching even if it saves them hundreds, because of blind loyalty. True story. All I can say is if people want to complain about prices, they need to shop a bit. Don’t blame the companies, we are Americans and when companies lose customers they have to adjust or suffer. People think it is easier to stay than take the 20 minutes to shop and save so I have no sympathy for those complaining about profits. This is America, not China.
VERY GOOD MESSAGE, WUDCHUCK! BUSINESSES ARE BUSINESSES, AND SHOULD BE PROFITABLE. OTHERWISE, WHY BOTHER? THE REAL PROBLEM IS POLITICIANS SUPPORTED BY BIG BUSINESSES AND PACS WHO THEN ARE REWARDED BY THOSE POLITICIANS. WE NEED TO SEVERELY LIMIT WHAT YOU CAN SPEND TO GET ELECTED—LOOK AT THE CURRENT PRIMARY CANDIDATES!
How can car insurers in this state,nj, take reductions of hundreds of dollars in their ads if they didn’t overcharge to begin with. Where is the savngs coming from/ Credit etc have been around awhile and I’m no better a driver today than I was 2 yrs. ago.
before we villainize another carrier with incomplete info, can we get all the facts here? If this is a Washington policy, most carry $10000 PIP, right? Wouldn’t a large chunk of that coverage already be gone by the time the victim saw the specialist (and after tests, including MRI, not cheap) who recommended surgery? I have yet to see anyone show what level of coverage this lady had; all I see is she ‘thought’ she had $18000 left; ok, $18000 of what? You don’t know how many times I’ve had phone calls from medical providers telling me they won’t perform something unless I approve it; no, we don’t preapprove. If its necessary and related, send the paperwork to prove same.
You betcha’ they are overcharging. I had one company increase a standard home by $78,000 in one year ! They said it was the inflation factor! Wow -you’d better tell Bush, cause he thinks we have NO INFLATION. I am losing customers over this. The insurance companies are RICHER than some small nations !
again, why are u blaming bush? have you shopped around for lower insurance? if not, then you are allowing them to charge at a higher price. bush can not control the individual companies. that is what capitalism is all about – if you owned a company you’d want to make a good profit. the govn’t can’t control a company, it can regulate that we all play fair (at least supposed to be fair). folks, take charge of what you have – take responsibility of your actions. if you think they are charging more, then become self-insured. retain your own risk. but remember, only way for you to take control is for you to do it – stop blaming others!
As much as I don’t like Bush I really don’t see how any of this is his fault. I agree with wudchuck on this; if you don’t like where you’re at, change. I saved 15% by not switching to GEICO. And if you feel you’ve been grossly underpaid, get a lawyer. I don’t like saying that but it is a valid option if you feel you’ve been stiffed on a claim.
As for profits – I love ’em. I do think some profits are grossly disconnected from market reality and some industries should have a little bit more of a heart; but then I look at the stocks and funds in my IRA and 401(k) and re-think my position. The market will correct itself if given time.
don’t we actually do the same thing when are looking for gas for our vehicles? not all gas station prices are the same. i have even seen 2 of them compete for customers and keep lowering their price, til it was too low and the station became an overgrown parking lot waiting for folks to get in. these stations know how low they can go. remember the law of supply and demand. if it’s a travelled road, and you want more customers in the store – you’ll lower that gas price a few cents (in many cases they make it back up on the purchase in the store).
insurance – tad different in that your not spending gas only a few minutes of your time to call an 800 number (so this is free) and get a quote (again, free, not heard it costing you a single penny for one). if it saves you over $50 or more every 6 months, that is a savings over time. loyalty? if that were so, then why have not gotten more oil from our own country. we import over 80%. there are a variety of different reasons to shop besides price. but that is a decision you have to make. the almighty dollar can present a hard bargaining chip in this day. that $50 dollars in some cases is a couple of tanks of gas, or even taking your spouse out on a date or pay an extra bill or two.
so if you complain, remember it’s not the us government fault (bush or chaney) – they don’t control your spending dollars – you do! matter of fact, i don’t control your spending thrifts either. you make an actual conscious decision on what you purchase and what price.
I can’t shop, I don’t have time, I have to work so hard because of Bush/Cheney that I don’t have time to hunt for car insurance; I buy mine thru the state, it gets assigned for me so I figure its the best price I can get; I get full coverage, but not any of those added extra coverages or limits they try to sell, I still to what I have to have from my state.
Regarding oil, it just makes me mad, we have oil everywhere, but we keep buying it from bad people; Bush/Cheney won’t let us drill offshort, won’t let us go to anwar, north pole, or whereever to get oil. So we keep getting oil from terror guys and Bush tells us we should open up a windfarm and grow grass on our roofs. I’m fed up, this profit proves that Bush does not drive a car or he would be fed up with insurance, too. If he drove a car, he would do something about oil and insurance prices.
we’re losing our concentration here, we had Rosie ill…must try harder…
no time? wait a minute, how many commercials do you see call us now? 24 hours we are open for a call. Accessible via the internet. sounds like just an excuse to not shop around – just like the excuse to blame others for you not doing anything. did you at least vote? or did you find an excuse not to do that? you can lift a phone – because you accessing this via the www. don’t tell me you can’t find the internet access because you have done the blogging here…
so stop blaming chaney or bush because you fear your own actions is hindering the situation!!!!
sarcasm…
Again off topic, but Rosie and friends need to read The Forgotten Man, or the new book Liberal Fascism. Today’s democrats running for power want to do things that will wipe out the middle class. U.S. sovereignty will be ceded to some world authority. Taxes will soar. The rich with connections to the power structure will find ways around the tax burden, while other will leave the U.S. and/or take their money elsewhere. Unemployment will rise, the lower class will grown, and the middle class will slowly by stamped out. The economy will be in deep doodoo. I don’t even want to think what the price of gas will be.
As for the east, I want to say come back when you have an actual understanding of it, but I know you don’t care. I’m inclined to believe that your not so naive that you don’t know what is going on, or that you honestly believe it is something other than what it is, or that you really believe the extremists would leave you alone. Either way, I know you don’t care. You just want to get a liberal democrat elected.
While I personally believe the effort to transform the middle east is the shining moment of the Bush presidency, I believe we should reject any candidate that is even remotely close to another Bush, in addition to status quo and liberal candidates. Bush is among a growing group of republicans who seemingly wish to take us to the same destination as liberals do, just at a slower pace. He has been a disaster on a number of issues because he has embraced a lot of the nanny state and sovereignty killing stuff that the left is looking for.
Now to throw in something on topic. I have no problem with making a profit. For the most part, a free market can take care of itself. When this doesn’t occur, there are legal remedies. The company I work for is not the cheapest carrier on the block, but if they were too high, they would lose enough business to force them to drop prices. Generating a profit allows them to build a better business by having more to invest in new technology. They can attract better employees by paying them more, and in turn providing better service. Having higher rates and being very strict may also help them refine their clientele, and weed out potential problems.
I agree that people need to shop for new coverage if they feel they are paying too much…i have done it a couple of times in the past 3.5 years and have seen my rates go down considerably. The first time I shopped, I switched insurance companies….The second time it was a matter of staying with the company but finding an agent who was willing to look into getting me better rates and he did so I left the agent who practically hung up on me everytime I called her to ask her why my rate was so high…guess she should have worked a little harder!
IF the profits went to hiring better people and new technology, I could understand a bit of an increase. But when I read about a CEO bragging that he and a few other ‘key’ personnel are taking home multi million dollar bonuses while wages within the company are stagnated, where should I ‘understand’ me paying their ridiculous bonuses?
I’m in Fla- no shopping for coverage here. Nationwide parent company is one of those companies that does the most bragging about profits while pushing up rates 325% – because of losses. Well, lose the billion dollars that 5 or 6 of the directors took home and the rates would correct themselves.
The one thing that keeps coming up is that our gov’t is now a purely for profit agency for the people that we have put there. Capitilism has replaced Patriotism in our dictionary- and if anyone thinks that will correct itself must be hanging out with Rosie these days.
We need a gov’t that understands that our priority should be here. Not converting the free world to Christianity or feeding every nation that can’t seem to figure out how to use birth control. Or handing out money and services to anybody that manages to find their way over our borders. We can’t feed, provide medical care, or sufficient employment to millions of people who are Americans. We are no longer capable of being the worldwide police department.
There. I’m off my soapbox now.
i think u need to rethink that thought dawn. patriotism did not build the economy. patriotism is for standing with our military whom protect our rights as citizens of our country. our beliefs to be a free american with the bill of rights and the constitution to give us civil liberties. capitalism is for business whom prosper because we earn money and then spend it whether for needed items or splendor. patriotism was shown when 9/11 happened, dec 7 – pearl harbor and many more days like that show we stand together as a whole. this act does not translate into business. if you had a business you would want profit as well. you would want folks coming to your place purchasing items. but if you let your competitor to make more money and give that to its management folks instead of the actual worker, then you have not made it a competative market. you did not choose, you let it choose you. so don’t come saying you could not make a choice when you can. remember, that if the place you live is making harder to live because of the cost of living, then move to another or search for a better service provider. just remember, it was not the goverment who chose your first insurance company.
Our entire gov’t body will put profit about American any day of the week. Patriotism was after 9/11 for the people who stood together and cried for vengeance and justice against those that killed innocent victims. Capitialism has taken over that cry. We stood as a nation for freedom in 2001. Now we stand under those that stand for the $$$$$. The private profit has corrupted everything. As long as those in power have a dollar to gain, nothing will change. Be it oil, private armies, insurance, drugs, health care, any industry that our elected officials have monatary gain from.
If we stood for our army, Blackwater wouldn’t be making 4 times as much and have all the best equipment. Our soldiers should have the money, equipment, and support that our tax dollars are giving Blackwater. Capitalism. Plain and simple. War is profit. Sickness is profit. Oil prices are profit – not just for the Mid East.
THAT makes me sick.
YES, DAWN, I AGREE THAT SOME COMPANIES REWARD THEIR CEO’S TO MUCH! BUT THOSE WORKERS HAVE THE FREEDOM TO WORK ELSEWHERE, AND THOSE CUSTOMERS CAN SHOP THEIR BUSINESS ELSEWHERE. UNFORTUNATELY IN FLORIDA YOUR STATE IS NOT FRIENDLY TO INSURANCE COMPANIES SO I UNDERSTAND SOME NO LONGER ARE SELLING INSURANCE IN YOUR STATE, WHICH LIMITS YOUR CHOICES. MAYBE YOU SHOULD VOTE FOR PEOPLE WHO LET FREE ENTERPRISE DETERMINE PRICES!
You sure are sick.