NetNews Usenet Archive 1992 #16/NN_1992_16.iso/spool/misc/consumer/14611

Text File | 1992-07-29 | 2.1 KB | 39 lines

Newsgroups: misc.consumers
Path: sparky!uunet!noc.near.net!chpc.chpc.org!rboudrie
From: [e-mail] (Rob Boudrie)
Subject: Re: Supplemental Health Insurance??? Does it exist???
Message-ID: <[e-mail]>
Organization: Center For High Perf. Computing of WPI; Marlboro Ma
References: <[e-mail]> <[e-mail]> <[e-mail]>
Distribution: usa
Date: Wed, 29 Jul 1992 15:12:56 GMT
Lines: 27

In article <[e-mail]> [e-mail] (Dan Breslau) writes:
>[e-mail] (Peter Chrzanowski) writes:
>
>>I don't quite understand the logic of having insurance pay for predictable,
>>probability-one expenses.
>
>>That is, I mostly need insurance to pay for low-probability, high-cost
>>losses: catastrophic medical care, for example, or the loss of my home.
>
>>The saying that comes to mind is, "nobody will insure a burning building".
>>If Bonnie has, say, $1500. in predictable, uncovered expenses next year
>>it would be surprising if anyone would contract to pay these expenses
>>(supplemental insurance) for any less than $1500.  Would you?

The problem is not just the "nobody will cover a burning building" scenario.  Imagine if your homeowner's
insurer said "Your house burned down in November, and your policy expires in December.  We will
pay for temporary living, loss of contents, and construction costs incurred before the end
of your policy period, but not after December.  Any costs incurred after that will not be covered
as we will not renew your policy, and claims are processed on a "cost incurred" rather than
"damage incurred" basis.  [ sort of like paying for someone's cancer treatment for the duration
of individually purchased health insurance; pricing them out of a renewal; then leaving them
virtually uninsurable.  One thing we need is the ability to purchase a "insurance of insurability"
rider on health insurance which would gurantee the ability to purchase insurance at the same
rate class (except for age which is predictable) as you were in when initially subscribing ].

Rob Boudrie
[e-mail]