Insurance

When I began employment in the insurance business in 1949, I learned insurance was based on “the law of of large numbers.” This was like taking money from Peter to pay Paul, but the system worked. Prior to retiring in 1990 I came to the conclusion that the insurance business had changed. It seemed that every policyholder, insurance agent and insurance broker must be a “profit center.” This concept is no longer insurance.

During recent times the insurance companies in California have lobbied to require motor vehicle owners have evidence of insurance before the DMV issues a license or renewal. After the Legislature enacted such a law, what is the response of the insurance companies? They insist on a substantial surcharge for automobile insurance. How greedy can they get? In the past a major impediment to buying insurance was the prohibitive cost, which if the insurance carriers have their way will be even more expensive. Could it be that this is their way of avoiding having to underwrite insurance for certain classes of residents?

HERMANN PAUL SCHLANDER

Palm Desert