[Flaming Conservative]

Well, of course! Because as everyone knows, insurance companies don’t lose money. If they have to pay out anything, they are going to get it back, if the whole country has to pay for it!

[Dilbert San Diego]

This is a key issue. Are rates raised elsewhere, due to staggering insurance payouts in California? Or are rates raised only in locales which have had fires or other disasters?

Someone told me that a national company such as State Farm, actually operates as 50 separate companies, so that each state has to balance premiums and payouts, for financial purposes. I don’t know if that’s true. But if true, rates should only be raised in such states which have experienced a disaster. In CALIFORNIA for example, the higher fire danger there should justify higher premiums than elsewhere.

Ditto Florida and other coastal states for hurricane damage.

[af_vet_1981]

Because as everyone knows, insurance companies don’t lose money.

Insurance companies that lose money do not remain viable. They cannot insure other customers. Insurance is a pooled resource. If the resource is insufficient no one else is insured.