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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (358623)	4/9/2010 4:11:36 PM
From: Jan W	2 Recommendations Respond to of 793896

You would think the companies would announce they are closing down and not doing an Business in Mass from now on. If the State still comes after them announce they will file bankruptcy and leave their Mass customers uninsured. Give them a little time. In the mid-80's, the MA Insurance Commissioner banned life insurance companies from requiring and using AIDS testing results when deciding whether or not to issue individual policies. And, if a company refused to comply and sold multiple lines of insurance, they would not be allowed to just discontinue the life business - they would have to pull all insurance lines out of the state. Reaction from the insurance companies was quick (I worked for one at the time which quickly put up their 'closed' sign and pulled out of the state). Lots of MA life, auto & liability insurance agencies closed that year and agents moved on or took early retirement. What residents quickly found out was that not only had their life insurance options drastically dwindled, but a lot of auto, disability & health insurance policies were not going to be renewed or written either. Chalk up another one to the laws of unintended consequences! In 1987, Dukakis reversed the ban. And concurrently, The Life Insurance Association of Massachusetts sued the state over its attempt to limit testing for AIDS for individual life insurance policies. A couple years later, the State issued new rules (allowing it) for individual life, health & disability policies. Perhaps we'll see history repeat itself in pretty short order.