Saturday, March 10, 2007

Stabilize or Nationalize Senator?
In an article written 08 March 2007 titled “S.C. senator will file bill to stabilize insurance: Policies of 3 years would be protected from cancellation” the author, Zane Wilson writes, “A key senator said Wednesday he will file legislation based on Louisiana law that forbids insurers from canceling policyholders who have been customers for at least three years.”

The “key” senator in the article refers to Senator Glenn McConnell, R-Charleston who states that such legislation is in “a response to the continuing outcry concerning policy cancellations in the coastal areas.”

Senator McConnell, are you trying to tell us that if there is a hurricane that hits South Carolina you and or the Senate will pay for loses incurred by the insurance companies paying out millions of dollars in claims? Is there not any responsibility that lies squarely on the shoulders of the person building in an area KNOWN to be prone to such weather patterns?

Companies are not stupid, they have done their research and understand their level of risk tolerance, and like in many cases these tolerance level’s may change over time. It is not and should never be the government’s job to force a corporation to endure more risk then it feels comfortable with.

Common sense must return to the people of the United States, there are places in the country that one is not suppose to farm, live or build. It is ok to try but by attempting to one must take the responsibility for the possible outcomes: drought, erosion, hurricanes, wild fires, etc. Of course another entity may wish to take this risk on (i.e. insurance companies) partially or fully and that is their decision, but it must be by choice not by force.

If Senator McConnell would like to spend more tax payers dollars on rebuilding the structures being built in a hurricane, erosion, etc prone area then the state can insure the policy holders of these canceled policies through a state funded insurance program. Unless of course you are completely set on nationalizing the insurance industry and in that case maybe you should first gather some advice from Hugo Chavez on nationalizing industries.

This blog entry is in response to the following article.

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