When I was on Neil Cavuto’s Fox TV program, he asked me, “What is the worst thing that can happen to business owners and to Americans?”
Neil expected me to say taxes. I surprised him.
Instead, I said, “Regulations are the worst thing to happen to everyone.”
I said “regulations” because they kill more jobs, opportunities, and businesses than anything else.
It’s the hidden evil of spiking prices higher, destroying jobs, limiting your choices, and crushing opportunities that are a few of the negative unseen consequences.
A classic example is what’s happening in California. If you don’t live there, it is spreading across the United States, no matter your state, as the bureaucrat regulators aren’t being stopped or put in check.
Indeed, in most states, the regulators are completely out of control.
For Californians or those living in California, I’m sorry.
You’re feeling the consequences as the insurance regulators in California are out of control.
Their tight regulatory policies and requirements have driven up the costs for insurance companies and made it impossible to operate in California with their price controls and long delays in making decisions, despite consistently rising rates.
Compound that with the state’s failure to clear brush, which led to massive wildfires in California, and you have a perfect storm for insurance companies to stop offering homeowner’s insurance.
That’s right, homeowners’ insurance… The insurance is disappearing.
Californians have no one to blame but the elected Department of Insurance commissioner and the bureaucratic regulatory agencies.
- Geico has closed all 38 of its offices in the state of California.
- State Farm is raising driver’s insurance rates, but that’s not all…
- The largest property and casualty insurance company in California, State Farm, is no longer accepting new applications for any kind of insurance other than personal vehicle insurance.
- Allstate is requesting a 40% increase in home, business, and casualty insurance from the Dept. of Insurance… More companies are expected to do the same.
This will be a terrible nightmare for any homeowner in California.
State Farm was California’s largest home insurance company, and Allstate was the 4th largest. With these companies gone, there will be fewer choices and less competition, which will lead to increased rates.
Alternatives such as loan companies may have to be used to get insurance.
A politician’s solution is to punish the insurance companies, hold hearings on how the insurance companies are price gouging, demand more price controls, increase regulations and impose more government oversight…
In other words, make it worse and protect their policies and bureaucratic blunders.
Some politicians in California are suggesting that the state completely take over insurance.
It’s a march to complete socialism in the insurance industry— Totalitarianism, the absolute control, and regulation over public (and private life).
Government control of business is never effective, efficient… or works.
This is another reason for Californians to leave the state.
It’s also another reason for other states to make sure that they don’t follow in the disastrous footsteps of “trendsetting” California.
You may read this article: Changing Your Medicare/Medicaid Health Insurance Company: Buyer Beware