The problem with "selling insurance across state lines" [View all]
This is my understanding of the issue. And I have heard they already can sell across state lines, but usually choose not to. Please, those with a better understanding should correct me:
As insurance cocompanies start selling across state lines, they'll look for states with the least regulations and consumer protections to lower their costs. They'll initially offer their competitive rates in just those places, specifically citing the other states as too burdensome to compete in. In order for other states to bring them in for competition and lower prices, those states will have to lower the bar on their own consumer protections. Weaken the regulations until all states have the same regulations.
Eventually, there will be no need for individual state insurance commissions since regulations are all the same. And if you have a problem, you'll have to call/write someone in Dumbfrack South Dakota who truly doesn't give a shit about your insurance problem.
Is that about right?
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