Message Font: Serif | Sans-Serif
No. of Recommendations: 1
Wouldn't this be a problem for many other goods and services as well? I don't see "jurisdiction" acting as a barrier to free trade among the states in most other areas.

No. A Toshiba model 1320 (made up model) sold in Michigan at Best Buy is the same as the Toshiba model 1320 sold at Walmart in Florida. We don't have state TV commissions that require tvs sold in Michigan have 50,000 pixels per inch while Florida requires that tvs have 52,000 pixels per inch.

That is what we have with state insurance commissions.

That is why Medicare Supplemental plans work so well. The Fed mandates a specific level of coverage per "letter" plan and regardless of which state or from which company you buy a "G" plan, they will all have a specific level of mandated coverage.

This is a rationale employed by those who favor restrictions on interstate health insurance. But it doesn't hold up to common sense. If an insurance company and policy meets the standards of one state, why shouldn't another state recognize that company as legitimate?

Because they don't! Why don't you ask the New York State Insurance Department why this is?

Here is the site that has the requirements to file to sell insurance in NY:

Each state has a different process. What in the world makes you think the industry wants these restrictions?

To limit competition.

From themselves? Come on, man. That is like suggesting the auto manufacturers would want each state to create their own conflicting emission standards to make it more expensive for EVERYONE to participate in the market - all to limit competition.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.