From: stevem@ew.timeinc.com (Steve Moonitz) Newsgroups: rec.motorcycles Subject: Re: Helmet Laws Date: 23 Feb 1995 23:41:59 GMT Organization: Entertainmment Weekly Message-ID: <stevem-2302951847180001@199.171.143.117> References: <regande.1.2F46728D@columbia.dsu.edu> <52.47932483.The.PressRoom@pressroom.com> <3idaac$hh8@goodnews.wv.tek.com> NNTP-Posting-Host: 199.171.143.117In article >3idaac$hh8@goodnews.wv.tek.com>, davet@valiant.cds.tek.com (Dave Tharp CDS) wrote:
In article <52.47932483.The.PressRoom@pressroom.com> James.Colburn@pressroom.com writes:In reality, most insurance companies more or less break even on premiums vs. claims; the way they make profits is by investing the premiums and limiting/delaying paying out any claims. The most common way for them to "reduce" claims is simply refuse to pay them out. They definitely make pretty healthy profits as evidenced by the fact that banks borrow money from insurance/reinsurance companies.I should be free to have lower insurance premiums if I choose to wear a helmet. Sound fair to you?This reflects an idea that's recently become popular, that is that somehow someone other than the insurance company is able to set the insurance company's rates.Insurance companies operate on broadly-based actuarial tables that pretty well define what their claims are going to be. They can then make additional profits only by raising their rates or by reducing their claims.
***BIG SNIPPO***
At some point, insurance companies may offer discounts to helmet-wearers. I doubt it though. Rest assured that if it happens, it will be only temporary, as long as the public still believes that the rates that they are charged are based on the activities of insurees, rather than the desire of an insurance company to make more money.Actually, it would be more in character for insurance companies to charge a large additional "fee" for riders who don't/won't wear helmets and not offer a discount at all to those who do wear them.
L8tr,
Steve | When in doubt, gas it ¹92 Ducati 900ss | It may not solve the problem, AMA #271481 | but it ends the suspense DoD #2319 CC #006