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What is being proposed is that different insurance carriers (which are commonly owned by a single insurance company, i.e. the various Blue Cross/Blue Shield companies) be allowed to conduct business across state lines. So that BCBS of IL could compete against BCBS of AL, for example. That is the internal competition, and in the P&C world, it only happens rarely.[/QUOTE]
I see. Thanks, I haven't read the bill. In that case internal competition would be pointless. If I were to change something I would do away with state depts' of insurance and have a federal dept. This would make for easier competition across the country. It's rediculous all the different state laws that a company has to conform to.
---------- Post added at 11:24 AM ---------- Previous post was at 11:22 AM ----------
Quote:
Originally Posted by Derwood
maybe this has been asked before (and maybe it's a non-issue), but would insurance companies all up and relocate to whichever state gives them the best tax incentives? If so, what does that do to the cities/towns whose local economies/employment base are tied to those relocating companies?
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That would make the most sense if they did wouldn't it? wouldn't you if you could? All comissions paid to local agents in the state would still be subjected to their state taxes so I don't think it would matter all that much.