On: State Farm halts new property insurance policies in California

[itake]

Insurance carriers pulled out of WA during the LTC crazy in 2020.

The state passed a law that was basically, pay 0.8% tax for the rest of your life or buy private LTC care for 30 days and avoid paying the tax forever.

The insurance providers were not happy to see people joining for 1 mo and then canceling.

[DaveMebs → itake]

They didn’t pull out in WA, they just stopped offering really cheap plans that were easy to cancel. They continued to offer higher-end LTC Insurance.

[Retric → DaveMebs]

Which is a little silly as people canceling LTC insurance early is just about the closest thing to free money you’ll find in the insurance industry.

[Schiendelman → Retric]

It isn’t. The costs associated with setting up the policy take a while to recover.

[KingMachiavelli → itake]

Wouldn't insurance providers love getting 1 month of premiums with nearly 0 risk of any actual claims?

[treis → KingMachiavelli]

These companies have high customer acquisition costs and are almost certainly losing money on a one month policy.