OT: Apophis is going to kill us all

[Baron Munchausen]

dogscoff said:
rstaats: I think you misunderstand the intent of insurance. Here's how it's supposed to work (from my experience, anyway).

1 - Customers give money to the insurance company.
2 - Insurance Company never gives any of it back to anyone, ever, under any circumstance whatsoever.

Hope that clears it up for you =-)

That's a slight over-simplification, though. The actual steps are:

1 - Customers give money to insurance company
2 - Insurance company invests money
3 - Insurance company pays dividends to investors (stock owners)
4 - Insurance company never gives money back to customers

There ya go.

[Spectarofdeath]

I believe you forgot a few steps in between 3-4.

1 - Customers give money to insurance company
2 - Insurance company invests money
3 - Insurance company pays dividends to investors (stock owners)
3a - Major disaster occurs that insurance is supposed to cover, insurance company figures out a way (aka makes up some bs)to deny all claims relating to said disaster.
3b - Issue goes to court and insurance company places a few well placed bribes to win the day and changes all policies to reflect new changes.
3c - Insurance company raises all premiums on ALL policies due to "Extreme court costs and costs of having to pay for all those victims of the recent disaster."
4 - Insurance company never gives money back to customers

[Renegade 13]

10 / 10 for the Stargate reference!

[Atrocities]

Home owners insurances don't cover jack [censored]. Hell if you even call them thinking about telling them a problem, your rates go up 10%.

[rstaats10]

dogscoff said:
rstaats: I think you misunderstand the intent of insurance. Here's how it's supposed to work (from my experience, anyway).

1 - Customers give money to the insurance company.
2 - Insurance Company never gives any of it back to anyone, ever, under any circumstance whatsoever.

Hope that clears it up for you =-)

Yea I know. I was just being facetious asking a rhetorical question I knew the answer to. I am sure you could find an add on to your homeowners policy for this. ha. Just pay the premiums for 20+ years then if this asteroid hits the house the insurance company will find a way around it to not pay.

and btw Stargate fans, myself included, Apophis will be coming to earth in his mothership soon. I am making a Starfury-Stargate Mod that will be a lot of fun.

[narf poit chez BOOM]

Yep and having insurance is a legal requirement for some things, so you can't get out of paying.

[Spectarofdeath]

It's a nice way of telling medium/lower level income people that rich people deserve to steal your money and theres not a damn thing you will ever do about it until you change the system...wait....the system is run by rich people....so ...yeah, your just screwed 6 ways from sunday.

[Jack Simth]

Narf:
Actually, you can, you just need a very large wad of cash to dedicate to it (at least, in the US). For instance, there's a particular amount of car insurance required (I don't remember the details, I'll call it $20,000 for now) to legally drive where I am. This is in case you get into an accident that's your fault - you have to be able to pay off the other guy to at least a minimum amount. If you can demonstrate you have the money squirreled away and dedicated to exactly that, that's your insurance - and it can draw interest (which you can siphon off). Theoretically, the law requiring the insurance is to protect everyone else (if you don't have the money, you can't pay their hospital bills) when you're at fault.
Some things are not required by law, but by contract. In this area, when you buy an actual new car, the contract on the car requires that you have full coverage until it's paid off - this is contractual, and is designed to make it so that the dealer doesn't lose money if you get into a wreck and see no need to continue payments (normally, if you simply stop paying, they can repossess the car; they can't do that effectively if the car is doing an accordion impression).

As to Insurance companies never paying out:
Don't know about your location, but in mine, they are actually legally obligated to pay out a particular minimum percentage every year - this still leaves them a big profit margin, but if nobody gets into a wreck, the car insurance company is (effectively) legally obligated to go smash headlights or something so that they can pay out on an insurance claim (fortunately, people in general are reckless enough that this doesn't happen). On a more personal note, my dad has been the beneficiary on an insurance company paying out an insurance claim - car insurance, specifically; got rear-ended, his insurance company got the money for the repairs from the other insurance company. All told, took maybe two or three weeks.

[bearclaw]

Here in British Columbia we have a government-run vehicle insurance system. And a law requiring that you MUST have insurance through them and no one else is allowed to sell vehicle insurance in the province.

Now, normally, I am dead set against such socialist systems and am all for when an industry is privatized. Though I do have to say one thing about a public insurance company:

In theory, profit is NOT their bottom line, being a government agency (even though ICBC has a several BILLION dollar stockpile). When I did have a claim (rolled my car in a snow storm) I had my payout in 5 DAYS!!! And was in a new vehicle 10 days after having my accident.

I was pleasantly surprised as I was expecting to have to fight for my claim.

[Renegade 13]

They are fairly efficient in situations where it's obvious whose fault the accident was (if anyone's). The biggest thing about ICBC that gets me is the lack of competition.

For example, when I was 18 and got my first vehicle, a 10 year old half-ton Ford F-150 4x4, my insurance rates were $1956 per year...and that's on a vehicle that's worth around $10,000 total. That was even with the 10% discount I got for not having been in an accident since I got my driver's licence (5% per year without an at-fault accident).

Had there been any real competition in the market, I highly doubt I'd have payed nearly so much; but the combination of my age, relative lack of driving experience, and lack of competition combined to siphon the money out of me at a horrendous rate!