(Sovereign Man) Over the past few weeks, state governments across the Land of the Free have been feverishly proposing new legislation that will virtually guarantee the entire insurance industry is wiped out.
The root of the issue has to do with something called business interruption insurance.
Business interruption is a pretty common type of insurance that’s designed to protect business owners against a number of risks.
But business interruption insurance has certain exclusions. It’s just like any other policy, and the insurers are very clear about what risks they do/do not cover.
A typical homeowner’s insurance policy, for example, covers your home against risks like theft, fire, and vandalism.
But most homeowner’s policies specifically exclude flooding. So any homeowner who wants to protect their homes from the risk flood damage can purchase a separate flood insurance policy.
Many insurance plans, including business interruption policies, also tend to exclude things like damage caused by war, government action, and “acts of God”.
It’s fair to say that most business interruption policies don’t cover a worldwide pandemic that shuttered the entire global economy.
But there’s a growing trend now where state governments are proposing new legislation that would RETROACTIVELY force insurance companies to protect their policyholders against Covid.
This is totally nuts. The state governments are the ones that forced businesses to shut down.
Now they expect the insurance companies to pay for the consequences, even though the policies specifically state that they don’t cover this type of risk.
So most insurance companies would be wiped out if this legislation passes… i.e. CUE THE GOVERNMENT BAILOUT of the insurance industry.
Just like airlines, hotels, hospitals, etc., the insurance company would be standing in line to suckle on that sweet taxpayer bailout teet, probably to the tune of another half-trillion dollars.