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To: mathprof
Sorry, I do not understand this

Geico sets it's own criteria for establishing
Costs of insuring various groups, as it defines them

They then set their rates to a point were their
estimated rate of return on investment is sufficient
to permit their business model to propagate

Individuals can purchase, or not, their product for
any reason they perceive to be in their self interest

Capitalism 101
56 posted on 03/20/2006 5:59:22 PM PST by HangnJudge
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To: HangnJudge

You'd think, but the government has the habit of getting involved. Usually some politician in a given state will make a stink about some perceived inequity, ram-rodding legislation through to right said perceived inequity. Warm and fuzzies to all involved, everything is sweetness and light. In the past similar stunts along these lines has caused companies to pull completely out of certain states. "If that's the deal, we'll just leave, no thanks."

The government's answer to this angle is to *force* insurance companies to provide coverage (at reduced rates) to those who wouldn't get written in the first place.


85 posted on 03/20/2006 6:25:15 PM PST by Freedom4US
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