I wouldn't be surprised to find it is most insurance companies. The insurance industry as a whole is seriously messed up and congress seems unwilling to do anything about it.
> I wouldn't be surprised to find it is most insurance companies.
In the U.S. I guarantee you that most insurance companies are NOT doing this. What this company is doing is called "Bad Faith" in insurance jargon. And the penalties for this sort of behavior are enormous, and can even include the possibility of the company losing its license to sell insurance in a particular state.
> The insurance industry as a whole is seriously messed up and congress seems unwilling to do anything about it.
Congress doesn't do much with insurance because insurance in the U.S. is regulated at the state level, not the federal level.
LOL, wait until you hear about ERISA and learn that everything you just said is wrong for most employee insurance plans and that you can't even get damages when they act in bad faith.
> LOL, wait until you hear about ERISA and learn that everything you just said is wrong for most employee insurance plans and that you can't even get damages when they act in bad faith.
We may be talking past each other here. I was referring to property and casualty insurance in my comment, while it sounds like you're talking about health and disability insurance. Two completely different worlds and regulatory frameworks.
Fair, those are definitely much more fair but just a quick search will show there is no shortage of courts ruling in insurance companies favor even when acting in bad faith. Just looking at complaints on the insurance commissioners website for my state seems to indicates even when they do get fined the amounts are small.
It's half true. There's not really underwriting for auto policies like there is with life or home insurance. You register your rating rules with the state and anyone who qualifies gets a policy. All the risk calculations and pricing are just look up tables and done automatically.
Now if you are in line for a large payout the insurance company will definitely review your application to see if you lied. Significant lies will get your policy cancelled and no payout. So don't lie on any insurance applications.
