[Vision2020] [corrected] Otter wants health insurance market state-run

[Kenneth Marcy]

On 12/12/2012 11:43 AM, Tom Hansen wrote:
> Yes.  It would be wonderful if health insurance coverage was as 
> guaranteed as unto mobile insurance and health insurance covered the 
> costs regardless of when the condition came into existence.

There is a big difference, we are now collectively saying as a matter of 
national health policy, between pre-existing conditions in human beings 
and pre-existing conditions in inanimate objects, such as an automobile, 
as far as insurance coverage is concerned.

> To put it simply, has any automobile insurance company refused 
> coverage to any of their clients because their vehicle was taken to a 
> repair shop for a "prior existing condition"?

I'm sure the answer must be yes. It is possible to insure a car that has 
physical damage when it is insured. However, that damage must be 
disclosed to the insurance company before the comprehensive policy is 
issued. Failure to disclose, and then subsequently claiming repair of 
the prior damage as part of a claim for even more damage later, is 
considered insurance fraud. Not only is that illegal, it is also cause 
for an insurer to refuse coverage. I suspect that it is enough of a 
national problem that some degree of additional rate collecting against 
it is built into some insurers' rates, especially for higher-risk policies.


Ken
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