Comment: Insurance is a free market, in most states

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Insurance is a free market, in most states

There are some things that are not commonly understood and the insurance business has done a very bad job communicating to the general public.
One thing is, insurance with few exceptions is governed and regulated by the states, there is no federal dept of insurance, thank God. Each State regulates the companies that are domiciled in that state, they make sure the reserves are adequate to pay claims, handle consumer complaints, and make sure that each company is operating according to the laws in that state. 50 laboratories of innovation, no concentration of authority and no meddling at the federal level.

Every state has a guarantee fund that each company choosing to do business in that state voluntarily enters into. So if a company can't pay its claims the others do, in a well regulated market that is very rare. Back in the day bookies did the same thing, if a bookie reneged on a placed bet, the other bookies would chip in and make good the bet, they didn't want to "wreck the game".

TRIA is voluntary, a business can wave this small charge. It came about after 9/11 in fear there would be multiple terror attacks costing billions and that hasn't happened. It probably should be ended.

Any federal insurance programs like flood insurance, managed by FEMA, or social security, have not had a very good track record.

I know many here are anti any regulation, but I look at it as a referee in a ball game. The ref makes sure the game is played fair and square according to the rules, but does not jump into the game and carry the ball or make an unfair advantage to a competing team.
very few states over regulate like Florida does and completely screws it up, other are much more efficient. I understand the state of Florida is now the #1 provider of auto insurance as they have through over regulation driven most of the private insurance companies out of the market. I understand that Florida provided insurance has no reserves, so if something goes wrong it will be a financial mess.