Working title (insurance)

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“The title insurance industry extracts a relatively small rake”. Yes, indeed!
I personally think the insurance industry as it now exists in the U.S. is
The ROOT OF ALL EVIL!
—but title insurance is the very least of it.
First of all, you as buyer don’t HAVE to buy it unless you’re getting a mortgage, in which case the Mortgage company is buying legal defense in advance (and it’s a bargain at the price.)

Moving on, to let’s say, health insurance: a large part of which industry is dedicated to denying payments on behalf of the insureds, or delaying relatively small claims so long that the patient usually just gives up. Oh yeah, there can be a lotta money at stake—and the third- party payment system is the REASON it got so expensive. Although of course the bill you see isn’t actually what the provider will eventually be paid, IF the provider prevails on getting coverage.

Now let’s think upon property insurance. That gets more and more expensive every year in any event, but, IF you ever put in a claim, you’ll find the company raising next year’s premium so as to recoup whatever they paid out. They can’t lose.

The insurance industry was well represented when B. Hussein was fashioning “Obamacare”. They lobbied hard for two things: the individual mandate and no cap on premiums. They got both! Can you imagine?!? A law that everybody HAS to buy your product, no matter WHAT you charge?!?

Incredibly, nobody ever blames the insurance industry: they blame doctors and lawyers. Haven’t they seen those ads BlueCross used to run, thousands of people in cowboy hats? How much d’ya think those cost to produce?!?

If ONLY we could get rid of the vast, many tentacled insurance industry!! But could we? It employs so many people.

A solution: get back to the catastrophic model. Like Lloyd’s originally was. AND, remember, the personal fortunes of the Lloyd’s board members were at risk if it turned out the available funding was inadequate.

I was on the board of our local library back in the early 80’s. It occurred to someone that maybe we should have board insurance. So , natcherly!— being the only attorney board member, I had to obtain it. No problem! The first year, it cost like $300.00. But then, the great “Insurance Crisis” of the mid 80s was declared! Oh, where is the historical restospective on that period?

As an attorney, the only kind of malpractice insurance I can get (and we must get it) is “claims -made”. The insurance industry brags that you aren’t really buying coverage, just renting it. They only cover claims asserted during the year you’ve paid for— AND of course, IF you assert a claim ,they’re free to drop you the next yr per, or re-coup their outlay in n increased premium. CLAIMS-MADE INSURANCE IS THE BIGGEST SCAM EVER! How did they get away with that? But they did, nd now…I don’t even know if any company writes occurrence based policies. They really can’t lose with a claims-made policy.

(Sorry, probably TMI. But thanks, it felt gooood! ! )

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Agree with the catastrophic model

I guess title insurance made sense in a pre-internet world where doing a search on titles and liens, etc was more onerous

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Health insurance is not insurance at all in the strict sense. It is more along the lines of a prepaid service plan. Much of what health ‘insurance’ covers is not an unforeseen loss but routine service. Examples are preventive care, prescription drug coverage, obstetric care — not to mention routine dental and vision care. It’s more of a racket whereby insurance companies skim some money off the top while merely serving as a conduit for transfer of funds from patient to provider. This is a very different vision of insurance versus what started out in Lloyd’s Coffee House in the 17th C.

Yes! Absolutely. This would certainly fix health insurance and return to the original model.

Other forms of insurance (e.g., property) hew closer to the Lloyd’s model than health insurance. Liability insurance is probably one closest to the classic insurance model. Ambulance chasers, er… personal injury lawyers are partly to responsible for high costs in this area but, in the end, the ‘injured parties’ pursuing these lawsuits are ultimately to blame — from medical malpractice to slip-and-fall. Lawyers should never have been allowed to advertise. Same goes for drug companies and medical practitioners.

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Yes, it is easy to blame the big bad insurance companies. The odd observation, though, is that insurance companies are not wildly profitable – as they ought to be if they are really raking it in from the public. When was the last time your investment advisor recommended buying stock in an insurance company?

The original Medieval concept of insurance was that prudent merchants shipping their goods on a treacherous ocean would rather choose to have a small definite loss (the insurance premium) than face the uncertainty of a possible total loss. But times have moved on, and the usual suspects have played their usual games. As drlorentz points out, “health insurance” is really not insurance at all.

Where did we go wrong? We allowed the evolution of the kind of fascist government where bureaucrats & politicians can give an industry Obamacare sweetheart deals, as Hypatia notes. Should we blame the insurance industry for buying the Political Class? Or should we blame the Political Class for its willingness to be bought? Or should we blame ourselves for allowing the creation of a ruling Political Class?

And while we are talking about blame, look at your insurance policy – for health care, for home insurance, for vehicle insurance, for life insurance. They all have too much fine print referencing too many regulations and too many laws. I would nominate the Legal Profession as the termites which have gnawed away at the foundations of society.

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Thanks to the McCarron Act all insurance can be regulated within each state which creates regional monopolies or cartels

Adding insult to injury

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Anybody can say what they want, but I will always be proud to be an officer of the court and to know the legal principles upon which our country was founded. Yes I’m proud of my Juris Doctor degree. And anybody who doesn’t recognize the value of that has fallen victim to the Sovietesque Doctor’s Plot— and Lawyers’ Plot — dnf Stalin purged all the lawyers who wouldn’t support him.

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That is a great spirit! Praiseworthy!

All the way back to Hammurabi (and before), the necessity has been apparent for the people in a society to regulate themselves and to deal with those individuals who have a negative impact on other people. This evolved into the concepts that everybody in a society should be subject to the same set of laws, and that those laws should provide justice for all (to the extent that is possible in an imperfect world).

As we look around at how our society has developed, it is easy to see that laws are not enforced impartially, and that too many in the legal profession are more interested in winning cases than in serving justice. The dedicated good lawyers (of whom there are many) have allowed amoral political lawyers to dominate the profession. A stringent house-cleaning is called for – after the Coming Collapse, of course.

But that is just one person’s view; doubtless there are other perspectives.

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What does “dnf” mean in this context?

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You should be.

My observation years ago was that about 50% of the individuals of every profession (Engineers, Lawyers, Accountants, Medical Doctors) are worthless. Meaning either they are lazy, incompetent or have really poor character (lie, cheat, steal). My guess is that more recently the percentage has been increasing. Thus, the incompetency crisis.

Intelligence doesn’t make you work hard nor does it provide character. Therefore, we should expect that whatever exists in the general population exists in every profession. If fifty percent of a population is lazy, then most likely fifty percent of plumbers or doctors will be lazy.

Most people don’t enter a profession for love of the profession. They draw people for the prestige or pay of the profession. Why do feminists worry about under representation in computer science and not garbage collection?

The professions in of themselves are not bad. They are only as good as the collection of individuals that are part of the profession.

I don’t hold any individual responsible for their profession or the state of the country. All of the professions have degraded. Part of that is increasing demand for various professions exceeding quality supply and part is the general degradation of the society at large.

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I found title insurance payments all the more galling when refinancing a loan on the same house I was already living in with the same spouse in JTWROS. No buyer or seller. Same parties. Nothing as to any claim on the title has changed. Why, even the exorbitant fee remained the same!

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Good post because insurance is a systemic problem in the U.S.A. One example is Florida.
Condo prices are going down because of the high maintenance & insurance costs.
However, if a competitive market existed, some insurance companies would fail, but premiums would be lower. Like so many industries, lack of real competition, and government capture by a few insurers (ie informal trust) has lead to an unhealthy market for buyers of insurance.

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The unstated assumption underlying this statement is that the principal aim of these entities is to make money for their shareholders. The reality is that the purpose of any bureaucracy is to perpetuate itself and to grow. Executives are rewarded for that by their boards of directors.

The voice of shareholders in corporate governance is negligible, except inasmuch as institutional investors are involved. Those investors, who mostly manage other people’s money (OPM), have other priorities: DEI, sustainability, climate change, and ESG in general. Making money barely appears on the radar. Just ask Larry Fink.

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Insurers in California have been losing at least 8 cents for every 1 dollar of premium collected for at least a decade

This is not sustainable especially with California mismanagement of wildfires

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It means “do not forget”. Everybody knows about the ‘Doctors’Plot” but few people know Stalin purged attorneys too.
A Soviet style state—which WE now are developing— cannot allow the great professions, medicine, law—to exist. They have their own code of ethics, primary loyalties and duties toward their patients/clients. In other words, contrary to the totalitarian fascist and Communist codes, professionals are not FOR the state, and they are or may find themselves OUTSIDE the state. A no-no.

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Well, here’s the sad thing. We used to be able to be pretty confident t that anyone who had earned an MD or a JD was, at least, smart. Medical school and law school were refiner’s fires. “Look to the right of you, look to the left of you: one of those people won’t be here next term” is how an incoming class was addressed—and that was correct. It wasn’t just anybody who could or would go through with the experience, even though they had all had the high grades necessary to get accepted. The professional schools demolished the students’ way of thinking about the world, and re-built it in their own image.

But, as education was dumbed down in grade schools, in high school, in college, the professional schools had to follow. DEI crowned their degradation. We DONT know that a white coat means intelligence any more—especially—let’s be honest for a change—if it’s not worn by a white faced “Doctor”.

Lemme admit law school was not the trial medical school was. But, they terrorized you as a student, they treated you with contempt, they cold-called on people on class, never commenting at all on your answer, and you had only ONE chance to make good: finals.
Now? My daughter had to do her last year of Harvard Law School at our dining room table grace à Covid, so of course I sat in. Not only was she told in advance when she would be called on, but the prof sent her an adulatory email afterwards! I just couldn’t believe it…

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That is the way things ought to be – the way things used to be. But look around – unfortunately, it is not the way things are today.

The professions, especially legal and medical, are now important elements of our sadly fascist state. They have a mutual back-scratching relationship with the politicians & bureaucrats which ensures they get the laws & regulations which enrich themselves at the expense of mere citizens.

Fundamentally, the kind of person who clambers up the greasy pole to a position of influence within a profession’s governing body tends to be the same kind of person who rises in the political/bureaucratic regime.

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That’s because DEI means deliberate selection by the state of individuals who could not succeed UNLESS they were selected for employment and then protected from their own incompetence, by the state. Competent people can do anything, work anywhere. But lookit: we have the first female admiral, Richard Levine, a man—even twelve years ago, just his photo would’ve sent people into gales of well-deserved laughter. It is only BECAUSE of his perversion that he is where he is. Same with Buttigieg, known as “Pothole Pete” back in South Bend. Why is he sec. Of Transportation? Cuz he’s gay!
And “merit” is now a dirty word.

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I visited my alma mater a few years ago and met with several people including the Dean of Engineering. They no longer try to cull the heard. Their goal is to help people graduate. The reason is that they can place every Engineering graduate.

There are 2x as many Lawyers and Engineers per capita in the US versus 1970. My guess is this is true of most professions (with the MDs being an exception. The standards may have dropped, but they still control the supply).

What is a society to do when the demand doubles, but the ability to supply the same level of quality does not keep up?

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