[1L]

I don't agree with "nobody dares files a claim" since claims are filed everyday, but I agree the insurance business is a racket. And this from an attorney who's practice has been litigation defense of insureds (i.e. insurance companies paying the bill).

The problem is that insurance companies don't want to pay claims. They obviously don't mind taking in premiums. When hit with a big claim, especially in commercial insurance situations, you can be they will hire counsel to see how they can get out of paying the claim. To top that off, states like Texas have bad faith claims settlement statutes, but the Supreme Court almost never enforces these.

[Mikey_1962]

OK nobody honest dares file a claim...

[Mikey_1962]

My point exactly: who else collects from day one, regardless for performance and is guaranteed by law (auto) so many marks...er... clients?

[lastchance]

What ticks me off is that insurance companies in Florida collected premiums for years and never had to pay out. But the first time they took the risk and lost ( I'm thinking about Hurricane Andrew) you'd have thought they had gotten their teats in a wringer.

What the heck happened to all the premium money they had before Andrew? Why wasn't that invested to offset costs of a possible disaster? And why the heck were they unable to calculate just how much they would have to pay out if x number of insured submitted claims for total damage? And why did they not stop writing premiums when the possible payout out paced the premium monies taken in ?

In Florida a new Building Code was adopted mostly at the insistence of the insurance lobby. Why without this they would be forced, forced to raise rates by a high percentage and maybe even leave the state altogether.

I am fortunate that I do have a decent insurance company. Farm Bureau Insurance.