Insurance

Insurance
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Insurance is a safety measure to recover from unexpected events. Hence there should not be any conditional classes in Insurance! As insurance is a safety net it should not be under Profit sector but under public non-profit sector.
Home insurance public non-profit corporations should be operated on State level.
Life, Health and Car insurance public non-profit corporations should be operated on National Level.
Small and Medium Business insurance public non-profit corporations should be operated on State level.
Large and Extra Large insurance public non-profit corporations should be operated on National level.

For personal property (Home, Cars, Life etc ) insurance there should be 4 levels of insurance and the revenue and payments for the 4 levels should be separate and never mixed. This will prevent premiums in one level from raising/falling because of happenings in the other level.

The levels are Base, Average, Luxury and Extra Luxury.
From/For the 4 levels there should another 4 levels for high risk namely
High Risk Base, High Risk Average, High Risk Luxury and High Risk Extra Luxury.
These 4 High Risk levels should be separate and never mixed.
So totally there will be 8 different types of insurance coverage and the revenue and payment from each coverage type will be kept in its own fund and should not be mixed with the other type in order to prevent raise in premiums of a type because of high claims in another coverage type.

E.g.

Home insurance in the State of Florida (Home Insurance as proposed operates at State level)

1. Base Level (Say all homes less than $100,000)
2. Average Level (Say all homes between $100,000 to $500,000)
3. Luxury Level (Say all homes between $500,000 to $5Million)
4. Extra Luxury (Say all homes above $5 Million)

6. High Risk Base Level (Say all homes less than $100,000 at high risk areas)
7. High Risk Average Level (Say all homes between $100,000 to $500,000 at high risk areas)
8. High Risk Luxury Level (Say all homes between $500,000 to $5Million at high risk areas)
9. High Risk Extra Luxury (Say all homes above $5 Million at high risk areas)

Note: The State has to declare every year specific areas/boundaries that are at high risk locations due to fire, hurricane, lake overflow, high tide based on statistics and incident happening in the last 2 years. Homes in these boundaries will come under the 4 High Risk insurance coverage types and within that will be under a specific category depending on the price of the home.

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-Suresh