re: Does insurance violate the basic laws of economics?

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but the company does everything in their power to avoid having to actually provide the good or service.

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100% untrue .. stop listening to what the billboard lawyers tell you..

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Further, in certain instances, the purchase of insurance product is required by government (such as auto insurance if you want to drive) or as a condition of another financial transaction (getting a mortgage to buy a house).

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Yes, because typically a 3rd party ie: a financial institution has a interest in said property. So, in the event that property is rendered valueless do to destruction that party in which loaned money for said property would like to be made whole.. This is not a hard concept really.. Liability is the only thing that is truly mandatory because most people operating these 2 tons missiles loaded with gas don't have the funds to cover most frick ups.

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The current LA insurance commissioner seems to be taking the position that if we remove some government regulation, then free market ecomomics will prevail, more supply will enter the market (more companies offering more polices) and the rules of supply and demand dictate that costs to purchasers should fall (much like the more companies making 60 in televisions, the cheaper a 60 in television will be).

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Yes, hopefully we'll get some movement on certain things and make La a little more hospitable to companies thinking of doing business here . La's problem is and always has been two things.. Dumbfricks behind the wheel and Trial lawyers making the rules..