States Loosen Rules To Allow Complex Insurance Transactions

The New York Times:

Companies looking to do business in secret once had to travel to places like the Cayman Islands or Bermuda.

Today, all it takes is a trip to Vermont.

Read the whole story: The New York Times

Comments

[blueken]

11:41 AM on 05/10/2011

Man, what are you supposed to do, sell everything and stuff cold under your mattress? Don't these "captiains of industry" realize how public trust is the fountain from which all their wealth flows? Karl Marx said that in a pure capitalist system the wealthy would use their wealth to fix the game, therebye gaining more wealth, which would allow the wealthy to gain even more wealth. When does it stop?

[gmb007]

11:52 AM on 05/10/2011

When does it stop?

It doesn't. Capitalism's logical conclusion, it's end game, is implosion.

[blueken]

12:06 PM on 05/10/2011

It stops when "We the people, in order to form a more perfect union" stop it. "They got the guns, but we got the numbers, we want the world and we want it.............NOW!" Jim Morrison. "Authority isn't derived by some sword given out by some watery nymph, but from a mandate and consent of the people" Monty Python

[gmb007]

11:13 AM on 05/10/2011

People, better start saving up now for the coming TBTF insurance industry bailout.

[gmb007]

11:12 AM on 05/10/2011

“Loosen Rules”

TRANSLATION:

Cheating.

“Complex Insurance Transactions”

TRANSLATION:

Gambling.

[gmb007]

11:08 AM on 05/10/2011

Financial time bombs. Guaranteed.

Insurance meltdowns. Guaranteed.

Insurance industry bailouts. Guaranteed.

Remember, when you play the Casino, the house always wins.

[gmb007]

11:01 AM on 05/10/2011

“For insurers, these subsidiaries offer ways to unlock some of the money tied up in reserves, making millions available for dividends, acquisitions, bonuses and other projects.”

>>> Yeah, much like the SS trust fund was “unlocked” (ie, raided) for other “projects”.

“The downside, though, is that the states are offering a refuge from other states’ insurance rules, especially the all-important ones requiring companies to have sufficient reserves.”

There’s a reason they’re called RESERVES and a reason they’re very heavily regulated in their home states - to guarantee an insurance company’s solvency and to protect policyholders’ interests in the event of claims.

Just like Wall Street, Insurance has become another flashy, ultra-high-stakes American Casino.

[Peanut Santiago]

10:47 PM on 05/09/2011

Deregulation.
Again.

Shall we just wait for the next economic crisis concerning companies doing insurance transactions in the U.S.?

What choice do we have?

Our politicians don't learn.
Or don't want to learn as long as they benefit even if the country suffers.

[lvdragonlady]

07:42 PM on 05/09/2011

WHAT the ?????.
Don't anyone understand that 'changing' the rules for insurance companies is ONLY going to help the insurance companies NOT THE PEOPLE.
ARE states really this clueless????"

[Peanut Santiago]

10:48 PM on 05/09/2011

What the states are doing is trying to get business away from other U.S. states and foreign countries.

And they do NOT care about long term consequences, only short term business gains.

[medicontheedge]

03:20 AM on 05/10/2011

Which is, of course, the current business model everywhere.

[OSI MODEL]

04:58 PM on 05/09/2011

OH know i going to have to read the fine print...no no no where's Warren

[bola47]

05:19 PM on 05/09/2011

when you read the fine print on new policies i'm sure there will be a clause saying "if we do not pay you--too bad".

[Left on Red]

02:33 PM on 05/09/2011

In other words... "We will sanction the rape and pillage of the public in return for relocating here"

Another winning formula from the Chamber of Commerce no doubt.

[pbnyc59]

01:30 PM on 05/09/2011

That worked out real well for the housing industry.

[StuffMoreStuff]

01:23 PM on 05/09/2011

So silly....why not just admit they're too high and complicated as it is, instead of doing back room deals that get certain companies preference while the others are at a disadvantage?

I know, that would makes sense, and policy makers aren't big on making sense.

[BBackSoon]

01:21 PM on 05/09/2011

This is just the next stage in doing anything a company wants to hopefully get it to move a plant or an office you your state.

'Move to my state and you won't have to pay taxes for 10 years.'

'Wait, move to my state and you won't have to pay taxes for 10 years and we will pay to refurbish an old building to fit your needs.'

'No move to my state and we will give you the 10 year tax break, and build you a new building with your own interstate interchange and as many stop lights as you want.'

Soon it will cost a company nothing to move a plant or office to a new state and they will move every 5 or 10 years because it actually makes them money.

We really have sold our souls.

[medicontheedge]

03:21 AM on 05/10/2011

Used to be you would at least get dinner and a movie before ya got fooked.
Now, YOU pay for everything, and still get the shaft.

[getsit]

01:16 PM on 05/09/2011

Deregulating insurance companies is the LAST thing states should be doing. As profit is king, for these corporations, it is likely that the healthcare they provide will not be at the level people will need.

This is why we need the federal government to set standards. Because states don't know what they're doing. Look at all the states trying to eliminate abortion. Jobs should be their focus, not interfering with women's rights.

[vippy]

11:36 AM on 05/09/2011

Ask "who is in charge" and the answer is "the Mafia."  It only gets worse from here on out and the lemmings will vote for the same two parties again and again. 

[Osusuki]

11:08 AM on 05/09/2011

This is exactly why we need a federal government willing to do more. So long as the feds stay out of the arena, the states are free to engage in a race to the bottom, and consumers lose that race no matter who wins. Develop strong nationwide, e.g. federal, regulation of the insurance industry (among others) and the states will not be able to engage in this self destructive behavior. Call it a "Nanny State", but states like Florida, Wisconsin and Ohio NEED a nanny to keep their governors from throwing entire populations under the bus.

[OSI MODEL]

01:02 PM on 05/09/2011

I love reading the post from those who dont pay squat in taxes.

[getsit]

01:17 PM on 05/09/2011

How do you know? Another ignoramus.

[Left on Red]

02:37 PM on 05/09/2011

Again, the willfully ill-informed step in with their fodder.