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insurance industry
Bush and His Pals in the Insurance Industry are Lying About the Cause of Malpractice Premiums
The insurance industry and its chief federal mouthpiece G.W. Bush claim that the high cost of malpractice insurance is due to "frivolous" lawsuits. But this is a big fat lie and they know it. Writes insurance industry expert J. Robert Hunter: [The Bush administration] exaggerates the overall effect of litigation on malpractice costs, by stating that insurance premiums are "largely determined" by the litigation system. Insurance premiums are determined by overall costs, of which litigation is a small amount. Premiums are greatly influenced by costs other than claims that are paid out, such as loss adjustment expense (the administrative cost of settling claims, most of which don't go to court) and underwriting costs (including commissions to agents and policy preparation expenses), interest rates, and investment results. The average malpractice "closed claim" from 1991 to 2000 was $27,823.52, according the A.M. Best statistics for the entire malpractice insurance industry."
Why does it come as no surprise that the insurance industry, which ranks right up there with the pharmaceutical industry for ripping off American consumers, has for years given twice as much money to the Republican Party as to the Dems? Because Dems actually look out for consumer welfare, while the Repugs - never more so than the Bush Administration - systematically work to undermine consumer protections.
Toronto Star: "Insurance giant Marsh & McLennan has been accused of cheating customers by taking payoffs from insurance companies to steer corporate clients their way rather than get those customers the best prices for policies, a lawsuit filed by [Eliot Spitzer].Some of the nation's largest insurance companies [are named in the suit which accuses the cos] of steering contracts and bid rigging. He said other insurance companies are being investigated. Two executives of AIG pleaded guilty yesterday to participating in the illegal conduct and are expected to testify in future cases. "The damages are vast, the corruption is remarkable," Spitzer said at a news conference after a court appearance." And Bush claims its the TRIAL LAWYERS that has driven insurance prices through the roof!
15-Oct-04
insurance industry
15-Oct-04
insurance industry
15-Oct-04
insurance industry