Now that the U.S. Supreme Court has finished hearing oralarguments in the closely watched health care reform case, theindustry is wondering how the high court's decision might affect thenew status quo that has emerged since the law went into effect in2010, according to the latest issue of BestWeek U.S./Canada.
In a release, the group noted:
the justices are expected to issue a ruling in U.S. Department ofHealth and Human Services v. Florida in June. Insurers, theirbrokers and regulators have many questions-particularly on the issueof how those with pre-existing conditions will be covered.
The research reported that through the Patient Protection andAffordable Care Act, Congress sought to address that problem bycreating a mandate requiring all Americans to obtain healthinsurance or face a financial penalty. The thinking was if morehealthy people were required to enter the risk pool, they would helpto offset the increased risk associated with pre-existing conditionconsumers and to lower health insurance premiums. Three days ofvideo coverage are included in the package.
In BestWeek Europe, European life insurers are being forced toadjust their business plans and capital management strategies inresponse to the eurozone credit crisis and regulatory changesincluding Solvency II, according to a new market review from A.M.Best Europe - Rating Service Ltd.
Also in BestWeek U.S./Canada, under fire for being too profitableand charging unreasonable rates, lender-placed insurance has beenhit with a flurry of consumer complaints and several federallawsuits.
Proponents say there would be no mortgages without an insurancesafety net and rates higher than voluntary insurance reflect thebroad risk that's insured without companies ever seeing theproperty, BestWeek said.
Gene Mergelmeyer, president and chief executive officer ofAssurant Speciality Property, told BestWeek lender-placed insurancepolicies don't go through an underwriting process because theyaren't individually written. He said his company contracts withlenders to insure all uninsured properties in the lender'sportfolio.
'Literally on all the lapsed properties; without underwriting,without inspection, without knowing the property's condition orwhether anyone is even living there,' Mergelmeyer said.
BestWeek is published by A.M. Best Co. for insuranceprofessionals.
((Comments on this story may be sent tonewsdesk@closeupmedia.com))
