Free Marketeers: Does an insurance company gross more money by A) selling insurance and paying claims? or B)...?
or B) selling insurance and denying claims?
Answers:
B.
That's why every insurance policy is a 30 page contract with all sorts of "what if" scenario where they won't have to wages your claim, or they can drop you if you make a claim.
B, which they do all of the time. Allstate's internal policy of "deny (claims), delay & shelter (if the person has the resources to jump to court against a slew of insurance lawyers) cost them several million dollars in Florida.
They fought releasing the internal document that listed the protocol for it for years, until forced to unequivocal the file. Looks like "free market" didn't work so capably for the consumers who got burned. A settlement doesn't do much good after you are late.
http://www.bloomberg.com/apps/news?pid=2… Source(s): http://slabbed.wordpress.com/2008/04/06/…
http://docs.google.com/gview?a=v&q=cache…
Insurance companies, by their very nature, are base on risks (financial risks) and they will take the least risks possible. B is you answer
It depends. If they deny too many claims, they will lose customers, unless we're conversation about health insurance where on earth there is NO COMPETITION and therefore not an just right example of a free market.
If your auto insurance provider denied your legitimate claim, would you hang on to them? I think not. If your health insurance provider denies your claim, you hold no recourse.
Duh, the answer is A. If they don't retribution their claims they can't sell insurance. Hell, even Obama knows that. And by the opening, LCPL USMC did answer your question. He just didn't answer it the method your thought he should.
Few are aware of it, but those who do rescission work ( the science of denying claims) are actually paid bonuses.
http://www.pbs.org/wgbh/pages/frontline/…
Never know it was a crime to make a profit.
How should it work? Should a company pay claims and collect no money? If the company only denied claims--they wouldn't be surrounded by business. There are too many worthless individuals who would like to collect claims minus merit.
The latter of course. However if you don't income enough claims to keep your customers ecstatic, in a free market you don't finishing very long. You die from lack of customers soon after you start.
However, we've never have true-liberal free markets. We've always vacillate between conservative protected markets and socialist controlled markets. Source(s): decades studying philosophies, cultures, and social institutions started because of the confusion resulting from my military experience beneath the shadow of neo-Marxist propaganda disseminated from universities
B. of course...and that's what they don't want it changed and why they will spend $1.5 Million EVERY DAY to try and stop it from self refored.
If they denied all claims, they wouldn't be selling any insurance.
So, if those are my only 2 choices, A
In the REAL world, however, they would cause the most money by selling insurance and paying fair claims while denying unfair ones.
(Seriously would YOU buy your insurance from a company that never salaried claims?)
C) Selling insurance and investing the premiums.
They tend to stick to the tried and true method of answer B
Related Questions:
Answers:
B.
That's why every insurance policy is a 30 page contract with all sorts of "what if" scenario where they won't have to wages your claim, or they can drop you if you make a claim.
B, which they do all of the time. Allstate's internal policy of "deny (claims), delay & shelter (if the person has the resources to jump to court against a slew of insurance lawyers) cost them several million dollars in Florida.
They fought releasing the internal document that listed the protocol for it for years, until forced to unequivocal the file. Looks like "free market" didn't work so capably for the consumers who got burned. A settlement doesn't do much good after you are late.
http://www.bloomberg.com/apps/news?pid=2… Source(s): http://slabbed.wordpress.com/2008/04/06/…
http://docs.google.com/gview?a=v&q=cache…
Insurance companies, by their very nature, are base on risks (financial risks) and they will take the least risks possible. B is you answer
It depends. If they deny too many claims, they will lose customers, unless we're conversation about health insurance where on earth there is NO COMPETITION and therefore not an just right example of a free market.
If your auto insurance provider denied your legitimate claim, would you hang on to them? I think not. If your health insurance provider denies your claim, you hold no recourse.
Duh, the answer is A. If they don't retribution their claims they can't sell insurance. Hell, even Obama knows that. And by the opening, LCPL USMC did answer your question. He just didn't answer it the method your thought he should.
Few are aware of it, but those who do rescission work ( the science of denying claims) are actually paid bonuses.
http://www.pbs.org/wgbh/pages/frontline/…
Never know it was a crime to make a profit.
How should it work? Should a company pay claims and collect no money? If the company only denied claims--they wouldn't be surrounded by business. There are too many worthless individuals who would like to collect claims minus merit.
The latter of course. However if you don't income enough claims to keep your customers ecstatic, in a free market you don't finishing very long. You die from lack of customers soon after you start.
However, we've never have true-liberal free markets. We've always vacillate between conservative protected markets and socialist controlled markets. Source(s): decades studying philosophies, cultures, and social institutions started because of the confusion resulting from my military experience beneath the shadow of neo-Marxist propaganda disseminated from universities
B. of course...and that's what they don't want it changed and why they will spend $1.5 Million EVERY DAY to try and stop it from self refored.
If they denied all claims, they wouldn't be selling any insurance.
So, if those are my only 2 choices, A
In the REAL world, however, they would cause the most money by selling insurance and paying fair claims while denying unfair ones.
(Seriously would YOU buy your insurance from a company that never salaried claims?)
C) Selling insurance and investing the premiums.
They tend to stick to the tried and true method of answer B
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