On 06/26/2013 12:59 PM, Jessie A. Morris wrote:
On Wednesday, June 26, 2013 12:50:13 Kyle Waters wrote:
Since I am not an expert at everything I only purchase things from
vendors whose insurance agencies are reputable. I verify that the
merchant actually does have a policy through Super Insurance Utah and
since he does I know that: 1. The insurance agency has checked out
this guy's wares to make sure they live up to his claims. Since
they'll be paying for my death (my family sues them and the insurance
agency has to pay out) they have a good incentive to make sure he's
legit. 2. I know that the insurance agency will pay out if I die.
I think people have tried to explain this to me before your explanation
is by far the best I've seen.
Elements of this to exist in our society and I think they can be a
really good way of handling things. The problem that happens in our
society (and maybe in a better educated society we could prevent it).
Is that Super Insurance Utah makes a bad call. Hundreds of claims are
filed. Super Insurance Utah closes down. Now all the companies are
insured by Excellent Insurance Utah. Of course I do my due diligence
and find that Excellent Insurance Utah is all the same people. Now I
can either switch to a set of store all insured by equally bad companies
or I can become a sustenance farmer.
But of course there will always be stores with good insurance
companies!! Actually there won't be. It's called the market for
lemons. Since consumers only have to make a decision about one
product(insurance) I guess the argument would be that they could spend
the time to do that right. I just don't believe they will. Of course
currently we manage all this by selecting a product called a politician
where research has shown our decision making isn't much better.
Kyle
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