Washington – By Homer G. Farnsworth & Molly Mulebriar.
Today the Senate, with unusual bi-partisan support, passed SB 2431 which critics say will fundamentally change the insurance industry in the United States. By a vote of 97 to 3, the Senate passed the Affordable Insurance Protection Act (AIPA).
Farnsworth and Mulebriar, on temporary assignment with the White House press pool, report that insurance companies will be required to insure all risks, regardless of risk characteristics. Community rating shall apply to the extent that no one risk can be charged in excess of government mandated pooling factors set by a commission appointed by the President. Insurance companies will be required to return underwriting profits, less 2%, to policyholders at the pro-rata rate of 50/50 cost share with the Department of Federal Insurance.
“The AIPA Act provides every American with insurance at the time they need it the most, when an unexpected loss occurs. Never again will Americans have to pay the heavy burden of insurance premiums prior to suffering a loss or a potential loss” said President Obama in a Rose Garden press conference. “It’s about time that insurance companies be held accountable, just like we did with my signature legislative milestone, the now famous ObamaCare Health Care legislation. I am proud of that and I’m proud of the AIPA Act too!”
Jackie Gleason, President of the American Insurance Council voice concern about the passage of AIPA. “Insurance rates are going to be pretty high due to this legislation. We will be required to underwrite policies after a loss has occurred which means the premium will be the value of the loss, less profits earned from prospective loss policies taking into account the 2% maximum underwriting profits allowed under AIPA.”
Moronia Kluless, President of the American Federation of Consumers For Fairness, stated “This is fabulous! Just think, when a hurricane hits, destroys your home and kills your husband and dog, every American will be able to apply for insurance and have their loss covered, post loss, just like getting health insurance through an exchange under ObamaCare!” “What a novel idea, insurance only when you need it!”Don Pedro, famous South Texas sage and copy editor for this blog asks: How does this affect our food insurance? (http://blog.riskmanagers.us/?p=7767 )