Insurance Companies

The Pensacola Beach Blog notes that State Farm Settles Mississippi Katrina Claims, which is good news for Trent Lott and other Mississippians who have been stiffed by State Farm for a year and a half. Hopefully the other insurance companies will also settle, and people along the Gulf Coast can move forward with rebuilding their lives.

Policyholders in each of the affected states are going to be required to go to court to get similar deals, because the laws and regulations are different in each state, but the framework is there for possible settlements.

I’ve had my “legislature warning flag” on the sidebar because the Florida legislature has been meeting in special session to deal with the property insurance crisis in the state. Rates have been skyrocketing despite record profits for the insurance companies.

Frankly, the free market doesn’t have an answer for the situation where private enterprise isn’t interested in providing a service. The state has had to create its own insurer of last resort, but that company isn’t allowed to compete with private companies and is required by law to charge more than the private companies for coverage.

The Republicans have passed a bill, but it seems to be predicated on the state not being struck by hurricanes any time soon, which is not a good bet.

When the Shrubbery talks about private insurance companies being the best solution for health care coverage, he obviously has never had to deal with those companies as a claimant. He seems to assume, like Trent Lott did, that you will get what you paid for. That only works if you are ready, willing, and able to sue them.