But you see, there IS a way to predict it. That’s what an “actuarial table” is. It’s a mother of all spreadsheets that makes rates based on formulas and such. There are little Oompah Loompah statistic readers whose only job is to compute and calculate how much premium needs to be collected over the course of the upcoming year. That’s what an actuarial table in itself is. I see you understand the basics of insurance, that a larger pool creates a lessor risk. However you HAVE to have some degree of certainty to determine rates. And if you KNOW you aren’t going to accept anyone with diabetes, cancer, AIDS, or other illnesses such as that, you have a far greater chance of getting within reason of estimating the amount of premium revenue annually in order to remain solvent and be able to pay out future claims.
But even IF they had a way to calculate all the PEC issues, do you realize how much YOUR premium would have to be to pay it all?
For that matter, I want to know how this effects the state insurance commissioner departments. Rates have to go through their approval process and now the feds are going to jack all that up. To not have named a Federal Insurance Commissioner just shows these jackwipes have NO IDEA what they are doing.
You seem to know the ins. industry well. How was the law written in relation to not taking people with various illnesses...aids,cancer, diabetes etc.?
Did they have the right to simply deny people? Were there certain illnesses or could they just deny any?