It seems that Farmers Insurance has decided to quit writing home insurance policies in Texas. The state was suing the company for unfair insurance practices, and gave 90 days for the company to ammend them. Farmers predictably claimed they couldn't comply.

It seems to me that if government agencies continue with harassment of these firms, the citizens are the ones who stand to lose. Nobody is GAURENTEED (sp?) insurance; you pay, they (hopefully) deliver. But if no one is willing to insure you, what are your alternatives?

We had a big stink a couple of years ago about a new school which developed mold problems. Teachers with the school district were suing the building contractor because of illnesses contracted, the teachers claimed, by this mold. So when shopping for insurance time comes along, the teachers find out that their insurance is nearly doubled; basically take it or leave it.

These teachers forgot that insurance companies only want to insure HEALTHY people. If an insurance company knows you are sick, why do they want to pay out on a problem they know about beforehand?

There isn't a real answer out there that is going to make everybody happy - this is just sort of a disjointed rant. Pretty soon, nobody is going to be insurable.

-- Anonymous, August 21, 2002

Answers

I'm confused. I thought buying insurance DID guarantee that you would be paid when whatever you insured against happened! What changed?

-- Anonymous, August 23, 2002

Joy, the problem is that insurance is priced exorbitantly if there is the slightest hint of a problem. In the example above, one school campus health suit, involving about 200 personnel, caused an entire school district of about 5,000 people problems with the insurance industry. I'm not blaming the insurance company, it is on record that teachers and other personnel made claims. It just seems so unfair that the rest of the district (1 person in 25 work on this campus for this district) must deal with this mess.

It's just so different from when we were growing up. Doctors and patients weren't so adversarial. It's just so sad.

It's a major concern with me, especially with two young children. Everybody seems to want more and more money for less and less benefits. Or at least more loopholes in being denied claims. I'm not sure who is to blame. Is it lawyers who will sue on a dime? Is it doctors who refuse to treat patients without insurance because of fear of non payment? Or is it the patients themselves, who aren't aware of the complexity of dealing in a world of people who take advantage of insurance coverage and go to the doctor for any little thing.

I've basically just thrown up my hands and just pay the insurance premium. We are all healthy (now); its that unforeseen illness / injury that forces me to do it.

-- Anonymous, August 24, 2002