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Dead Peasant Life Insurance Crack Down – Health Insurers Can Still Cancel Health Insurance – California

Posted Oct 12 2009 10:01pm 1 Comment

I’m not exactly sure what the new law means as far as how it will regulate the practice as it seems very jumbled.  Once again if we had some algorithmic laws in place, this would be easier to interpret, but we don’t so it’s a mumble jumble of text that usually ends up for a judge somewhere image along the line to interpret once legally challenged.  You can read an earlier post I made here about the activities of Wall Street relative to these Human Hedge funds of investments, where as if you are in a group thrown into a bond and you live too long, investors lose their money.  

  "Dead Peasant' Life Insurance Policies - Human Hedge Funds

Also in the news today in California, health insurers get a big break on still being able to cancel policies at times when the patients may really need it.  Health Insurers can still run their algorithms to “score” and analyze to rescind a policy for one of their insured.  If a new federal law comes into play I would think this law could be over ridden, so maybe that might shed some light into why it was vetoed.  Back in July of 2008 we had this from our governor:

  Schwarzenegger signs ban on health insurers' rescission reward ...

In July of this year 2009 carriers said no to rescissions:

Health insurers say “no” to limiting rescissions – congressional ...

It appears with these 2 actions in particular that healthcare reform isn’t going anywhere in a hurry and those algorithms for profits are right at the scene of the crime.   Nobody can accurately budget and be confident these days on the dollar amounts with their algorithms as technology is going to keep throwing all a left curve every day, so perhaps again with algorithmic laws we could enter into a new way to work with and absorb these costs that we can’t even see today.   Writing this blog and researching what is in the making somewhat drives me to this point.

The insurance industry is under heavy attack for the ways and methodologies that algorithms used, but again we will not entirely be able to rely on anyone’s projections, but rather think about how we can intellectually spend the dollars to result in better healthcare without denying service.  BD

Insurance Companies Under Attack with Lawsuits ...

As of Jan. 1, it will be illegal for investors, brokers and certain senior citizens to engage in a transaction known as "stranger-originated" life insurance.

The practice involves a person, usually older than 70 years of age, buying a large life insurance policy, often with borrowed money, image with the understanding that the policy will be sold to investors after a two-year period when it becomes harder for insurers to claim fraud has occurred.

LA Times History on this Topic

In exchange the senior citizen receives a substantial fee, and the investors continue to pay the policy premiums until they can collect the death benefit.

Such a scheme is "a wager on human life and violates the most basic principle of life insurance," said Brad Wenger, president of the Assn. of California Life and Health Insurance policies.

The new law regulates but does not prohibit the sale and resale of people's existing life insurance policies.

Crackdown on 'stranger-originated' life insurance becomes law | California Consumer | Los Angeles Times

Related Reading:

If you Lie – You Die said the Insurance Carrier (You did not report your acne)
Is This a Case for a New Law – Illegal Algorithms? How Do You Sleep at Night Rockefeller asked the CEO of United Health Care
Obama to meet with American Medical Association To Discuss Healthcare Reform – the Unknown Dollar Factor versus the Known
How Similar is Wall Street to the Health Insurance Business
Comments (1)
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I think that Obama has done a great job in bringing the US population public health insurance. I think that it is an integral part of the UK and other nations' public life. In many ways, access to healthcare is a basic human right. I have been following developments at the insurance index that lists health insurance sites at recently. I feel that Obama is doing a good job for the USA overall, it has only been a year. So let's stop giving him a hard time and let him get on with his job. After all, he is a doing a lot better than the previous President ever did.
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