So true. Seems we recently had the discussion concluding that those insurance companies (that are too big to fail) don't have the interests of their policy holders at heart.

Hank,

Suing insurance companies every time they deny a legitimate claim is something that a lot of people cannot do, and the insurance companies count on it, and that's no way to reduce the overall cost of L&I insurance.

If 30% of CA claims are fraudulent, that underscores why costs are high. WA L&I employs numerous inspectors and investigators to combat fraud, and still depends on citizen reports of abuse, which they do follow up on.

I agree that philosophically private L&I insurance should be less expensive than state L&I. But it won't be. The profit margin of private insurance will exceed the cost of state gov't inefficiency in this case. To the extent it doesn't, it will be from denying legitimate claims as an underlying business principle, and that's a principle I can do without.

Sg