Flood Insurance Pros And Cons

Clients who need insurance the most would be an enourmous cost to the insurer since the clients would spend the insurance money. The price of insurance would then increase which would reduce the number of people who believe that it is worth it. Costs will rise in order to prevent the insurance company from collapse, and the individuals who are most likely to get sick stick to the policies of the insurer. The problem with public insurance would be the fact that everyone has to pay for the insurance because adverse selection would be present without

1. So, instead of paying these high premiums that are currently in place by private insurers, we can pool all of our money into one public fund which would cost the same or even less.

Insurance companies will be monitored by a new governmental committee to prevent price gauging. If an insurance company was found to price gauge they would be heavily fined.

The subject of insurance and how heavily the government can mandate it or not mandate it is a constant struggle in politics. There is always the question of “what kind of relationship should the government have with its people and what role should it play with businesses?” Currently, a popular subject is the Affordable Care Act (Obamacare) and it is challenging the boundaries by requiring people to have health insurance and requiring businesses to offer health insurance to everyone and anyone. Mandating insurance is a hot button subject in other areas too that we will discuss like auto insurance, workers’ compensation insurance, and professional malpractice insurance.

The Drought Relief Service (DRS) was enacted by Franklin Roosevelt, as part of his New Deal, in 1935 to provide aid towards the Great Plains in the Midwest of the United States, suffering from a drought. This program “…provided cash, livestock feed and equipment to farmers and businesses directly affected by the drought” (History.com). Although the program sounds great in theory, it actually cost the government “…52.5 million (dollars)” (History.com). That is, by no means, cheap at all, but it did help the Midwest by providing relief, recovery, and reform. This benefited the American farmers in the Midwest because it gave them relief from the great drought that was making them go bankrupt. The program benefitted the economy because the government

The 1988 November ballot in California had four insurance-related propositions that sought to reduce the rates of insurance policies for automobiles, properties, and casualties. Proposition 103 was the only one of the four to be approved, and it would win by a small margin. The proposition sought to drastically change the present state of the insurance system, causing the rates to be significantly reduced based upon a fair system. The system was to provide an insurance premium based upon factors that mattered most: the driver’s history, years of experience in driving, and the number of miles being driven annually. The proposition would be created by Harvey Rosenfield, an accomplished lawyer and consumer advocate. Harvey would receive the support from Ralph Nader who would help to push towards the approval of this proposition. The proposition was a huge success, creating drastic changes in the insurance industry. As a result, the state of California now has a four-year elected Insurance Commissioner, as well as a reduced rate for all policies. Good drivers receive additional benefits, and insurance companies are prevented from being able to increase their pricing by other factors that would be linked to discrimination and price-fixing.

In a World Health Organization publication titled “Environmental Health in Emergencies and Disasters: A Practical Guide, disasters are defined as “events that occur when significant numbers of people are exposed to extreme events to which they are vulnerable, with resulting injury and loss of life, often combined with damage to property and livelihoods” (Wisner & Adams, 2002). These disasters can be natural or man-made; one type of natural disaster are those of hurricanes. Hurricanes are large, powerful storms that can create winds of 74 miles per hour or higher. Swirling winds can cause significant damage to buildings and trees, heavy precipitation can result in severe flooding, and the emergency situations that arise during and after hurricanes can greatly impact the health and well being of many individuals, particularly the vulnerable population of elderly individuals residing in nursing homes (NASA, 2017; Wisner & Adams, 2002).

Besides the general purpose of providing healthcare to all, the idea of government healthcare is that there is a single-payer as opposed to multiple insurance companies as well as government payers. All citizens are considered insured and only charged based on each individual’s “ability to pay” (MacDonald, 2013). This insurance would be paid for by the single-payer, the government, though the taxation of its citizens. Examples of this type of system can be seen in countries such as Canada and Sweden, as well as our own Department of Veterans Affairs ' VA health system. The idea of a nation-wide single-payer system has remained fairly popular in the United States due to the popularity and acceptance of the government’s Medicare program. In MacDonald’s article, “Healthcare reform: Socialized medicine?”, he quotes Deborah Chollet, a senior fellow at Mathematica Policy Research in Washington, D.C.: "No matter where you move in the country, you keep your Medicare," she says. "It allows you to go to any doctor or hospital you choose, and it 's not wildly expensive given the relatively expensive population it serves." (2013) Opinions such as these are what is fueling the desire of U.S. citizens to evolve our multi-payer system into a universal single-payer system. This would eliminate competing private insurance plans and exclusion of patients from coverage due to their existing health status (Kemble, 2012). Overall, a single-payer system appears to be a more equal, streamline

The IC-SRP will reduce the cost-shifting problem by driving healthy individuals, who would otherwise not purchase insurance, into the marketplace. This ensures that insurance companies will remain profitable by introducing millions of new, otherwise unattainable, customers to the insurance

Balko also points the brightside of having private insurer’s handeling our healthcare. Balko believes that we should all have more access to our health savings accounts. If we have more access to our accounts we may have the option of carrying over some money for our retirement. When we aren’t spending the money given to us by government and using our own instead, we can be more wary of how we spend our money. This again gives us incentive to live a better lifestyle. He uses Margo Wootan’s book as evidence as to why we need this more than ever. Wootan claims that, “We’ve got to move beyond ‘personal responsibility bias.’” Wootan basically says that it is not entirely our fault and practically begs the government to take control of healthcare.

The purpose of this report is to geologically evaluate the potential hazards for flooding in Hazard City. This report will include a detailed historic and extrapolated Stream Gauge Data Worksheet, as well as a graph of the Discharge Frequency Curve expected on Clearwater River. The report will provide Hazard city with my scientific analysis, conclusions, and provide recommendations concerning potential flood damages.

Also, another political factor that applies to State Farm is McGarran-Furguson act. This act falls under the antitrust law category. State Farm is well aware of this act by stating that “the McCarran-Ferguson Act provides that the federal antitrust laws are applicable to the business of insurance in instances where the "business of insurance" is not otherwise regulated by state law” (State Farm, 2015) This act provides every driver the protection of being taken

Answer: Property and casualty insurance protects property (houses, cars, boats, and so on) against losses due to accidents, fire, disasters, and other calamities. Property and casualty policies tend to be short-term contracts and, that’s why the subject to frequent renewal is, and one more characteristic feature is the absence of savings component. Property and casualty premiums are based on the probability of sustaining the loss. To estimate the key determinant of the price of an insurance policy, i.e. risks, insurance companies take third-party proceedings that develop models of catastrophe loss probabilities. Based on the numbers form Exhibit 5 of the case we see that

The inherently antagonistic relationship between insurance companies and consumers is the “core problem” with insurance, but there is more. Imagine a retail organization that could somehow force every single person within the selling area to buy their product. With insurance, on the other hand, certain kinds of insurance are mandatory. It is against the law to own and operate a car without insurance. If the mortgage is greater than a certain percentage of the value of the house, so is Private Mortgage Insurance. Aside from the fundamental unfairness of mandatory insurance, when purchase becomes mandatory rather than voluntary, costs are likely to become inflated. Furthermore, when something is covered by mandated insurance, the costs of repair and replacement become inflated. People charge more because it is covered by insurance. How many people who have suffered fender bender auto accidents haven’t noticed overpriced estimates from body shops when the work is covered by insurance? In other words, most purchase decisions are based upon perceived value – the trade-off between the quality of the most desirable benefits and the price paid for those

Flood control is a public good that helps to prevent flooding which, benefits the community, but can cause market failure.