how that goes.
For losses due to certain catastrophic acts, it is common for insurance policies to preclude losses due to those (acts of war, acts of God, etc.).
On the general concept of getting government out of the insurance business, I would expect many more types of coverage to be available, at both higher and lower premium levels, if insurance companies are allowed to respond to market demand without government regulators dictating what and who they must cover.
The question of solvency of insurance companies could be addressed in a couple of ways, by having private agencies rate the insurance companies for solvency, and by having the insurance companies develop private re-insurance agreements among themselves for cost-sharing should a member not be able to meet payments to policyholders.
I'm sure there are other benefits and strategies for privatization - those were just the first I considered.
Want DP delivered to your inbox daily? Subscribe here: