BusinessReport.com

Posted on February 25 at 12:23 p.m.

Has anyone ever considered the possibility that mandatory insurance generates more claims? If the insurance were not there, many claims would never be filed because there would be little to no chance of recovery. Underwriters will tell you that an insurance company can not make an underwriting profit on a 10/20/10 policy in Louisiana. The money is made on premium financing. The original intent of insurance was to protect one's assets. However, with mandatory insurance, people who can not even afford premiums are in effect being forced to protect assets they do not have.

Rather than have mandatory insurance for people with no assets, those who want to protect assets should have liability, uninsured motorist, med pay, health disability insurance etc. Basically, you create a defacto no fault syster. Therefore fewer claims.

Also, changing the prescriptive period on personal injury claims from 1 year to 2 or 3 would greatly reduce the number of lawsuits. It's just common sense.

On See you in court