Badgolfer

Why Should Life Insurers Be Bailed Out?

There are many more problems that are apparent on the surface which have had a long incubation period.In Florida,where we have had commercial and personal experience that until now had no complication by the Recession.
When Hurricane Andrew posted the largest losses in history,then Florida Insurance Commissioner Nelson refused to let the insurance companies recover there reserves in additional rates,which was his job.Instead, he "showboated" as the people's commissioner to boost his campaign for US Senate.You guessed it,Florida citizens(read: the great ill read)made him a US Senator.Speed forward to Hurricane Ivan and three other hurricanes.Insurance companies(those remaining in Florida)bailed out further.
Now comes the "Big R"(or is it "D"?).State Farm is withdrawing from Florida for insufficient rates plus another problem:their investments are worth a whole lot less and they can't back the business they already have.
Meanwhile,the State re-insurance fund rests finally on the taxpayers.
Like it or not,we have to back the insurance companies,or see trillions of loans go into default because of a regulatory default.