Overhaul rules and regulations throughout the individual Insurance regulatory schemes (I.E. Medical, Dental, Automotive, Mortgage/Renters, ETC…) to protect individual financial assets and accountability of insurance companies to include:
- All companies must create individual, interest accruing accounts for premiums paid.
- All premiums paid ARE the assets of the individual, not the company.
- The Company can charge a fee for service not more than 2% of the policies total premium value on an annual or semi-annual basis.
- Effectively, the Company is responsible for managing the funds as well as fund disbursement to the individual customer.
- Agents or Brokers of the company are paid employee’s of the company and are not subject to receive commissions off of the “Sale”, “Upkeep” or “Maintenance” of accounts.
- An individual at any time has the right to transfer, the value in full, including interest earned, his or her account to another company less any debts owed to the previous company.
- Any individual, whose account is in good standing, cannot be denied access to their funds as long as the request for funds is keeping within the bounds of the policy created. I.E., you cannot use a auto policy to pay for something that can be covered under a mortgage policy or vice versa.
- All Companies engaged in providing “Insurance” services MUST maintain no less than 35% of all available funds on hand as available cash.
- No deductible payments allowed
- Tax free premiums
The reason behind the above is simple. We currently pay premiums to insurance companies with no real benefit to an individual. As an example, a 25 year old, forced to pay health insurance premiums monthly, loses any premiums paid over the course of the year if he doesn’t need those services. Meanwhile, this same person at 45 now requires more care and higher out of pocket costs. If this same person pays say 1,000 a year (for ease of calculations) in premiums. After 20 years of insurance premiums, thats 20,000 for when he does need the services that is Tax free, gained interest (so more than the 20,000) and can be used to meet his or her healthcare needs.
This by no means is all inclusive but i think its a good start. I look forward to comments.