Liability Insurance

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growler

growler

Senior Member
Location
Atlanta,GA
I recieved a notice that there is a class action suit pending against my liability insurance carrier. Nothing to do with me.

Today I recieved a notice of new insurance rates that are about 30% higher.

Would like to know if this is happening to others. If you recieved a notice of the Class action then you will know who I'm talking about ( probably not a good idea to mention the company name ).
 
brian john said:
Dale:

What was the Class Action Suit regarding?
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The Class Action is pending in the US District Court for the District of New Jersey. ( not exactly my home state )

I'm not a lawyer but it seems that they allegedly broke some of the antitrust laws ( state & federal ).

I don't care how many laws they break, I just don't want them to raise my rates to cover legal expenses.

I'm going to shop around but I'm afraid this may influence rates in general.
Face it, if one company gets sued and loses then they will all be sued before it's over. What's a little coruption & racketeering anyway, it's the American way.

The tobacco companies lost and now I have to pay $25.00 for a carton of cigarettes. That's double what the price was. I see a trend here.

I think this has something to do with it. http://www.doj.state.or.us/releases/2006/rel120406a.shtml
 
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groweler

groweler

Is your liability insurance carrier a small outfit? Usually larger insurance companies get sued all the time. (Everyday to be more precise) and they can keep there rates somewhat constant. In the past they could not be competitive, (Especially in NJ) however now they seem to be more reasonable. Perhaps changing yours would not be a bad thing:wink: .
 
Liability carriers often are forced to raise premiums when it appears their risk has increased. Many times this occurs after the fact, something that seems inherently unfair, but the way our court system works it happens a lot.

Its a lot like making a contractor pay a higher price for a part he used last year retroactively.

Insurance rules require carriers to have an adequate reserve to cover expected losses. If their reserves are not up to the task, rates have to go up to increase their reserves.
 
Stop the train (of thought) or get on board...

Growler's premium is going up, because...
ZAIC is being sued (or was and apparently lost?)....
Who insures the insurer? Another carrier?

(Here somes the train...woooo - woooo)
So is ZAIC's premium going up?
Surely an insurance carrier has insurance against suits? That's what's they do - insure things.

I'm guessing ZAIC is passing there loss onto the consumer.
 
celtic said:
Stop the train (of thought) or get on board...

Growler's premium is going up, because...
ZAIC is being sued (or was and apparently lost?)....
Who insures the insurer? Another carrier?

(Here somes the train...woooo - woooo)
So is ZAIC's premium going up?
Surely an insurance carrier has insurance against suits? That's what's they do - insure things.

I'm guessing ZAIC is passing there loss onto the consumer.
Click to expand...

that's not fair
 
I guess I was wrong.

I guess I was wrong.

After getting in touch with my agent and getting an explanation of my bill I can better undestand the increase. It turns out that it's not really a 30% increase but around 10% ( what inflation really is , they call it a re-assessment for the area ). The rest was based on predicted business growth ( not likely ). I think I'm starting to suffer from paranoia ( I'm convinced that all the people I do business with are trying to nickel & dime me to death ).
With the price of gasoline, copper and every form of insurance going up I may have to start moonlighting ( or moonshineing, old family side business ).
 
emahler said:
that's not fair
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Who else is there to pass the loss onto?

The reason there are rules requiring insurance companies to have adequate reserves is to make sure there is money available to pay claims. If they run out of money to pay claims, that is a BIG problem.
 
People forget that insurance companies and government have no money of their own. Their money comes from customers and taxpayers. Whenever the government or insurance company has to pay money out, they will be looking to you and I to replace those funds. It is easy to say let (government or insurance) pay for it, but the bill eventuallyt gets passed on to us (at least those of us who buy insurtance and/or pay taxes).
 
haskindm said:
People forget that insurance companies and government have no money of their own. Their money comes from customers and taxpayers. Whenever the government or insurance company has to pay money out, they will be looking to you and I to replace those funds. It is easy to say let (government or insurance) pay for it, but the bill eventuallyt gets passed on to us (at least those of us who buy insurtance and/or pay taxes).
Click to expand...

I would think that insurance co's are in it to make money. Sometimes you win, sometimes you lose. Maybe they shouldn't make 10 bil this year and only make 8 bil! No hard #'s to back it up, but I bet they don't lose $$$.

The Govt isn't here to make $$$. At least as far as I can tell.

Tom
 
My point is that costs, both of government and insurance companies, will get passed on to consumers. That seems to be a point that many do not understand; neither the government or insurance companies have any money other than what we give them. The government will either increase the deficit or raise taxes to cover expenses. Insurance companies exist to make money for themselves and their stockholders. They may take a short-term loss, but eventually they will increase rates to recoup any losses. If they don't they will dissappear. There is no free lunch, eventually we all pay.
 
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