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To: Sub-Driver
As such, the additional cost to insurance companies though large may not be so burdensome that they need a bailout to survive.

Except they are guaranteed a bail-out by the law itself. The federal government is bound to cover 80% of any losses the insurance companies might experience in a given "risk pool".

3 posted on 12/22/2013 9:29:36 AM PST by okie01 (The Mainstream Media: Ignorance On Parade)
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To: okie01

Good catch. You are correct that the bailout is already codified into the law itself.


5 posted on 12/22/2013 9:31:24 AM PST by USNBandit (sarcasm engaged at all times)
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To: okie01

As such, the additional cost to insurance companies though large may not be so burdensome that they need a bailout to survive.
**
Except they are guaranteed a bail-out by the law itself. The federal government is bound to cover 80% of any losses the insurance companies might experience in a given “risk pool”.
********
This is true. But 80% isn’t 100% and the stockholders and the stock market will render a harsh judgement on these companies. Premiums will rise to compensate and the pool of good money making customers will decline.

How do you spell Death Spiral?


28 posted on 12/22/2013 11:41:23 AM PST by InterceptPoint
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