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Is Insurance Legal Racketeering?

slo1
Posts: 5,200
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7/30/2013 1:45:16 PM
Posted: 4 years ago
At 7/30/2013 10:51:06 AM, pozessed wrote:
I am just curious what everyone may say.

Why would anyone think that? Sure there might be a lot of legal wrangling on disputes for what is actually covered after a loss, but just take away insurance and let everyone self insure their auto, homes, lives, businesses and see how well everyone fairs.

Imagine this, no home owners insurance, now the banks and lenders not only have to deal with risk of non-payment from traditional reasons such as unemployment, medical isssues, income issues, etc from the borrowers, but also have to take the full risk of a loss due to fire, storm, ect.

This world does not function with out insurance lest we decide we don't care to own things of value anymore.
DetectableNinja
Posts: 6,071
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7/30/2013 3:40:34 PM
Posted: 4 years ago
Why would you think it is?
It's not about reciprocation, it's just all about me,
a sycophantic, prophetic, Socratic junkie wannabe.

- The 1975, "The Sound"
Khaos_Mage
Posts: 24,987
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7/30/2013 9:17:12 PM
Posted: 4 years ago
Not if it isn't coerced.
At least the noble sheep provides us warm sweaters. All your hides would provide are coward pants. - Dick Solomon

"I call albatross!" - seventhprofessor
the_croftmeister
Posts: 678
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7/30/2013 9:33:54 PM
Posted: 4 years ago
At 7/30/2013 10:51:06 AM, pozessed wrote:
I am just curious what everyone may say.

I'm pretty sure that racketeering is defined as being illegal, in which case legal racketeering is a nonsense notion. I think both are aspects of the same phenomena, insurance is one that is deemed beneficial for society and racketeering deemed negative.

Make sense?

Also, nobody forces you to take out insurance. Sure some governments will take a levy if you don't, but they don't hold a gun to your head. Though for cars this isn't the case, but then, I don't want people driving around who don't have 3rd party personal insurance.
YYW
Posts: 45,734
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7/31/2013 12:59:30 AM
Posted: 4 years ago
At 7/30/2013 10:51:06 AM, pozessed wrote:
I am just curious what everyone may say.

We should all resort to tontines instead.
Queen_Bee
Posts: 1
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3/8/2018 1:39:59 PM
Posted: 2 months ago
At 7/30/2013 10:51:06 AM, pozessed wrote:
I am just curious what everyone may say.

I believe that yes, insurance is racketeering. And yes, I believe that insurance is necessary. When you open an insurance policy, the underwriters essentially open a line of credit in your name. They don't actually pay anything if you file a claim, they pay it with this line of credit. If insurance was legit, and not a racket, you could pay off the amount of that line of credit (state minimums or maximums, depending on your policy), and stop paying, or only pay the fees incurred by the company managing that money for you. There is no pay off, and if you spend your entire adult life paying insurance and never file a claim, you receive no recompense. Instead, you pay for the car, you pay to register that car, you pay for your ability to drive with your operator's license, AND you pay for the possibility that you may cause damage to someone else or their property...all you get is the car. This in similar with house, (some) life, and even health insurance. In my mind, that seems a bit unfair, especially considering that any of the said "privileges" can be revoked or denied on the right person's whim, such as when claims are denied for no good reason or you happen across one of the corrupt law enforcement officers that wish to harass you, or worse, do something like plant contraband to falsely incriminate you (especially when you can't afford the lawyer to fight it). I like the idea of what the US Postal Service does, though I can't say I know the means by which they do it. They have vehicles that have no license plates and they have no insurance policy, they instead have a fund that specifically designed and set aside for the instance of an accident. I want that! :)
Love everyone, it's simple...but not easy!