Thursday, December 15, 2011
Gov Scott Signs Property Insurance
Due 2 Jan 2011. Analyze and discuss how this rewrite of insurance practices will affect you in acquiring property insurance. What types of things do you need to know when you determine the type of policy inclusions you buy? Does this bill help consumers or the insurance industry? If we help the insurance industry, does it help Florida citizens?
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The rewrite is allowing the restoration of the private insurance market. Though it's suppose to "help" reduce cost for property insurers and liability for tax payers, it allows insurance companies to set higher price for policies. This policy will affect us acquiring property insurance by causing us to pay more for property insurance which come with stricter policies. When we are looking for insurance, we have to look for how much the policies cover, along with what will benefit us the most. I think that this bill benefits the insurance industry more because we end up paying more and for stricter policies. Insurance industries end up charging more for policies. I think if we do help the insurance industries they will benefit more then us.
ReplyDeletei think this rewrite of insurance practices is only beneficial to the insurance industries. We can be sure about the fact that the premium will be increasing since the private insurance company can set the price higher. It might result in forcing policyholders to go into Citizens. Since the price will be higher now, some policyholders might just get the policy that they can afford, not necessarily the one that can protect the property the best. This will cause problems in the future. I don't think helping the insurance industry will have a significant influence on our lives. Even though the company will start doing better financially, there seems to be no tendency for them to hire a significant amount of employers to help out the average Florida residents. I couldn't think of any other benefits this rewrite could bring us.
ReplyDeleteThe point of our governor signing this bill into law was to in fact help out all those private insurance companies by decreasing the amount of people who have Citizens Property Insurance Corp and increase the amount of people who buy insurance from private companies. The private companies will then be able to raise the prices of insurance for the company to gain money and power but for the individual to go into the Citizens Property Insurance Corp if they can not afford the private insurance. Now that the prices are changing, people will only buy the insurance that they can afford, not what they need or want. From this, we need to make sure the policies cover what we need and how much it covers. This bill helps the insurance industry by A LOT! They receive the extra help from the government for people to use this insurance that does not necessarily cover a lot. The insurance industry will not help Florida citizens, only hurt them. Yes, it will leave our insurance field getting tons of money, but these people who are buying the insurance may not be covered in the right area. This will hurt the average family.
ReplyDeleteThe rewrite gives more power to the private insurance industry to set higher rates for individuals to pay. It will be more of a financial burden for those who purchase insurance. Now this bill enables the "companies to pass on reinsurance costs to policyholders". Buyers of insurance now need to think about what costs their specific policy covers. This new legislation does not protect Florida citizens from all sinkhole damage, which can be quite costly. New taxes and rates will soon be enforced regarding insurance policies, taking more money out of Floridian's pockets. I don't think this bill helps consumers as they will have to pay more money to get adequate insurance coverage. Even some government officials are showing disapproval of the bill as it hurts consumers. Helping the insurance industries might boost business, but many will struggle under these new regulations and costs put on the citizens of Florida.
ReplyDeleteIt seems as if the rewrite is only beneficial to the private insurance companies. The insurance companies are able to set higher prices which ends up being detrimental to the consumers. When purchasing insurance it is very important to be aware of what will be most beneficial for your situation and what ind of insurance coverage you actually need. This does not help the consumers at all because they end up having to buy the insurance they can afford which is generally not what they need. If we were to help insurance companies it would allow them to continue making a lot of money but it would not help the average Floridian. We would have to pay more money for insurance that is not even adequate coverage.
ReplyDeleteThe changing practices of property insurance are benefitting the private insurers while damaging the policyholders. Used to create some competition in the property insurance market, it has limited the coverages available for their packages and skyrocketed the rates at which the consumers will have to pay. Therefore, when deciding what kind of inclusion would be best, it would be beneficial to check what kind of coverages it provides. Regardless, consumers' wallets are being flattened and frightened. Helping the insurance industry would help them survive but at the expense of our lives.
ReplyDeleteThe rewrite of the bill is only helping the private insurance companies by allowing them to set higher rates for the policyholders. When buying insurance, we need to look at what exactly the specific policy is going to cover. This new bill doesn't help consumers because it is forcing them to pay more for their insurance, which is a necessity, and they will not be getting any added benefit from the price increase.
ReplyDeleteThe rewrite allows insurance companies to charge people a higher price for policies. People need to determine what they are getting for their money when they are purchasing their policy because it doesnt always cover what they think it does.The bill helps the industry because people are still paying the higher price for the policies and not getting what they should out of it. If we help them, Florida citizens will not benefit.
ReplyDeleteWhen you determine the policy inclusions that you buy you must look at the coverage it gives and also the price of it. The rewrite is definitely more beneficial to the insurnce industry. It encourages buyers to buy from private companies as opposed to Citizens Property Insurance Corp. Helping the insurance industry wouldn't help American citizen because it wouldn't offer a substantial amount of jobs, and it would result in higher insurance prices for customers.
ReplyDeleteThis rewrite of insurance practices will make it possible for insurance companies to charge higher prices. In order to determione the type of policy inclusions to buy, what the policy covers should be considered and reviewed. It helps the insurance company and not consumers because the new bill is causing the policyholders to pay more for the same coverages. This does not help Florida citizens because it colud end up charging higher prices for families for the same policies they already had.
ReplyDeleteIt's always a difficult, if not impossible task to satisfy all parties involved in any sort of big-time legislation. On one hand, the market for private insurance is suffering because the Citizens Property Insurance Corp controls the market for coastal homeowners. So the bill will help create competition, which is a good thing for the market because as we know, as more firms enter the industry, the equilibrium price will drop. So this bill (in theory) benefits Florida homeowners as well as insurance companies since other insurance companies will be able to compete with Citizens, and homeowners will have a choice in insurance provider and have a wider variety of policies varying in price and coverage. Now, whether or not in practice this won't backfire on homeowners is another argument altogether and can't be argued without taking the appropriate time to carefully evaluate the text of the bill and its' potential effect on homeowners.
ReplyDelete