Comment on Why is it apparently cool and fine for insurance companies to spend countless billions, trillions of our money constantly buying ad time?

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The_v@lemmy.world ⁨11⁩ ⁨months⁩ ago

The amount the company must maintain on hand depends on the state. In some states it’s less than 1% of the policies written. Most of the time they only hold enough out of their premiums to cover an average of 2-3 years of claims.

The reason it’s so low is because of federal disaster relief when something big happens. The insurance companies advocate for it to be called a federal disaster. Then the government steps in and foots part of the bill. The poor are usually left losing everything.

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