Saw This from The Department of Justice

[miloa2z]

Reported in the N.Y. Times this morning, the Department of Justice announced they would be bringing RICO charges against 257 insurance carriers for violating the 1963 Consent Decree. The charges are a result of a 4-year investigation into the business practices of the signers of the Decree. Inside sources reveal numerous automobile body repair shops across the nation had solicited the Department of Justice for the investigation which included the direct intervention of free trade, know as “steering”, along with price fixing through the use of Direct Repair Programs, known as DRPs. Sources state the investigation was helped by many current and former insurance industry employees. Their revelations into the heavy-handed practices of the insurance industry helped to confirm the allegations brought by the auto repair industry.

Insurance industry analysts claim this could have a further erosion of the economy, as the insurance industry represents 14.7% of the nations GNP. Further stating this could be larger than the Enron scandal. The industry has been rocked by a slew of lawsuits within the past 5 years over the use of aftermarket parts, and HMO practices.

Insurance leaders expressed doubt as to the validity of the charges explaining that this is a movement of sour grapes by a few shops. They further stated they would defend their right to do business their way to the fullest extent of the law. Noting that each state governs how they do business within that state, and no national implication can be implied by today’s announcement.

The Bush administration declined to comment on the potential fall out and the effect this would have on the nation’s insurers or the economy.

not sure how true , but made for good reading

[taranaki]

Sadly,any attempt to enforce good business practices on the insurance companies will most likely only result in higher premiums.As consumers,we have largely ourselves to blame for the state of the auto insurance industry...somewhere along the line,cheaper premiums became more important than quality or repairs/replacement.We all grudgingly pay out our few dollars every quarter,blindly trusting that we are contributing enough to make quality repairs viable when needed.It pays to look very carefully at what you want from your insurance,sometimes the cheapest option is a long way short of the best.

[YogsVR4]

Insurance is a scam to start with. The industry is so powerful, that most states require that you have insurance just to drive the car. Nothing like having the government force consumers to give their money to a private institution. Though it should be a surprise. The government likes taking our money and giving it to the lazy and the ass kissers.

[taranaki]

Insurance is not compulsory in this country.What I find galling is tha if you are not insured and are involved in an accident,the other guy's insurance company will take you to court to try and recover its losses.WTF? Ithought that was what they collected the premiums for!

[YogsVR4]

Its that friggin "no fault" insurance method.