🚀 go-pugleaf

In article <1992Jul6.171741.10608@unocal.com>, stgprao@xing.unocal.com (Richard Ottolini) writes:
> In article <ostubble.710436508@uclagsm> ostubble@agsm.ucla.edu (Otha Stubblefield III) writes:
>>A couple of weeks ago, a local TV news station displayed a story highlighting
>>this issue.  The story involved a young man who picked one of the big ad
>>insurance companies out of the yellow pages.  After several premiums he
>>had an accident and filed with the insurance company and the DMV.  The 
>>young man had his license suspended because the agency was not licensed
>>to sell insurance in CA, and as far as the DMV was concerned, the young
>>man was not insured, was in violation of state law.
> 
> Fake insurance companies are a big scam in South CA.  So are fake medical
> insurance companies.  If you haven't heard the name of the company before
> and the price is considerably below average, then it is too good to be true.
> 
-- 

  On the other hand, since this program is administered through the
State Insurance Commisioners office, it's possible that we are seeing some
"protectionism" at work here in the wake of Prop 103.

  Remember that the reason the insurance companies are in trouble is that they
made the same dumb investments that wreaked the S&L's and are wreaking the
commercial banks. Unlike those institutions, California Insurance companies,
serene with the mandatory insurance requirement, simply raised their rates to
cover their losses. Prop 103 was passed. The Insurance companies fought
it and lost. In the meantime, a host of new insurance companies, most of
them quite legitimate, are able to come into the state and offer the same
protection for less premiums simply because they are not havinjg to amortize
millions of dollars in losses from the 80's junk bonds debacle. This is
a threat to the present insurors, who go to the commisioner and claim
(accurately) that these new companies will drive the resident California
insurance companies out of business. The Commisioner decides to limit
these new companies access to the state to make certain the local boys
stay healthy enough to survive their own bad decisions of the 80's.



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|   I feel the EARTH MOVE, under my feet! I feel the sky tumblin' down!  |
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