Insurance

[LATau]

The one thing you failed to realize is that insurance companies are still posting record earnings, and that they only insure people if they are sure they will make a profit. This is the point of business. It should be self evident that if a well run non profit insurance company was started on behalf of the GLOs, people would pay less money in premiums.

What is sad is that while financial risk has gone up, the behaviors that are actually risky have plummetted.

Funny you mention this battle, as tort reform was a major republican issue, especially on the libertarian branch of the party, going into the last election. Tort reform, combined with the federal oversight of monopolistic behavior by insurance companies, would help GLOs immensely.

It is sad that some just accept the reality of rising rates as fact without looking into why or figuring out ways to solve the problem.

For states who dont require insurance, how about new hampshire, which does not require you to carry liability insurance for your automobile. You are not required by law to pay to reduce your financial risk. I personally think being legally required to buy a product priced by a company not covered by the sherman antitrust act is the definition of extortion.

Any company can whine about rising costs as an excuse for charging higher prices. The real problem is that people are willing to pay these exorbitant prices, and more importantly, at least in the case of my GLO, are required to pay whatever amount the NHQ tells you to pay, and in most cases if you don't pay, you go to a collection agency. Furthermore, you can only cancel this insurance bill when you graduate, my GLO doesnt recognize INACTIVE members. They still get billed for the insurance unless they have dropped out of school.

It's pretty easy to see whats going on here. Rising costs are never an excuse for rising prices. Prices are determined by supply and demand and what they are willing to pay. Since they are required to buy insurance by law, people are willing to pay almost anything in order to keep 120 or more years older GLO's alive, to keep doctors in hospitals, and to be able to drive their cars. It's just a matter of continually putting on the squeeze slow enough that no one notices til its too late and paying off lobbyists while simultaneously lying to the public about rising costs instead of the fact that they are simply trying to maximize value for their shareholders.