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Bad luck keeps on coming
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<blockquote data-quote="Warren Allison" data-source="post: 1851029" data-attributes="member: 40587"><p>Actually, rate increases are forced on them by the insurance commissioners. Their number one job is to make sure that a carrier has enough reserves to cover their claims liability. In this state, you get in trouble some what if you deny a claim you are legally liable for. You have up to 6 months to pay a claim once you have the info needed to do so. After that, you will be assessed a penalty of 8% interest until it is paid. No carrier waits that long obviously...they wouldn't stay in business long if they did. But, if they paid a claim they were legally<strong><em> not</em></strong> supposed to pay, they can be hit with legal penalties and be kicked out of the state. </p><p></p><p> In Ga, no liability carrier has made an underwriting profit since 1990. That means they took in more premium than was required to maintain reserves. Any profit comes from "float"... interest earned on investments on reserves. You don't take in premiums and pay a claim the same day...so there is a time where the money that comes in, draws some interest until it is paid out. Most carriers, even close-held corporation carriers, do not distribute profits to stock holders. Instead they put it into their reserves, so they can write more business. </p><p></p><p> And there are standard ISO forms for every kind of insurance policies that are written. With auto insurance, or any liability insurance, the <em>pertinent information</em> is all there on the declarations page. If you look at a dec page from any insurance carrier, they all look exactly the same, and are in the standard ISO format. Liability limits on the first line, or coverage "A," etc.</p></blockquote><p></p>
[QUOTE="Warren Allison, post: 1851029, member: 40587"] Actually, rate increases are forced on them by the insurance commissioners. Their number one job is to make sure that a carrier has enough reserves to cover their claims liability. In this state, you get in trouble some what if you deny a claim you are legally liable for. You have up to 6 months to pay a claim once you have the info needed to do so. After that, you will be assessed a penalty of 8% interest until it is paid. No carrier waits that long obviously...they wouldn't stay in business long if they did. But, if they paid a claim they were legally[B][I] not[/I][/B] supposed to pay, they can be hit with legal penalties and be kicked out of the state. In Ga, no liability carrier has made an underwriting profit since 1990. That means they took in more premium than was required to maintain reserves. Any profit comes from "float"... interest earned on investments on reserves. You don't take in premiums and pay a claim the same day...so there is a time where the money that comes in, draws some interest until it is paid out. Most carriers, even close-held corporation carriers, do not distribute profits to stock holders. Instead they put it into their reserves, so they can write more business. And there are standard ISO forms for every kind of insurance policies that are written. With auto insurance, or any liability insurance, the [I]pertinent information[/I] is all there on the declarations page. If you look at a dec page from any insurance carrier, they all look exactly the same, and are in the standard ISO format. Liability limits on the first line, or coverage "A," etc. [/QUOTE]
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