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**brraverishhh** · 07-17-2010, 11:56 AM

Insurance companies don't default even if they regularly undercharged customers because their revenues are derived primarily from investments, not premiums.

No, insurance companies don't default because they face extraordinarily tight regulations and [at least in the United States] are compelled to purchase what is effectively reinsurance from the state I don't think this is true (the causal relationship, that is). It is a defensible claim, however.

07-17-2010, 11:56 AM	#10
brraverishhh Join Date Jan 2006 Posts 5,127 Senior Member	Insurance companies don't default even if they regularly undercharged customers because their revenues are derived primarily from investments, not premiums. No, insurance companies don't default because they face extraordinarily tight regulations and [at least in the United States] are compelled to purchase what is effectively reinsurance from the state I don't think this is true (the causal relationship, that is). It is a defensible claim, however.
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