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Monday, March 03, 2003 Page: 7A
THERE ARE A NUMBER OF FACTORS THAT HAVE CREATED THE HEALTH-CARE CRISIS (AND)
MOST OF WHICH ALREADY HAVE BEEN DISCUSSED AT LENGTH. THE LARGEST FACTOR WHICH
ALSO HAPPENS TO BE THE LEAST EXPLORED CONCERNS THE INSURANCE INDUSTRIES
INCOMPETENT MANAGEMENT OF THEIR RESERVES. TO QUOTE HERBERT DENEBERG, THE
FORMER STATE INSURANCE COMMISSIONER, “WE NEED INSURANCE REGULATION THAT IS
DEDICATED TO REGULATING THE INSURANCE INDUSTRY INSTEAD OF THE REGULATION THAT
IS DESIGNED TO GIVE THE INSURANCE INDUSTRY ANYTHING IT WANTS.” IF AN
OBJECTIVE ANALYSIS WERE MADE ONE WOULD FIND THAT THE LOSSES CREATED BY
MISMANAGEMENT OF THE INSURANCE COMPANIES INVESTMENTS IN SOME CASES LOSSES OF
50 PERCENT OR MORE HAS CREATED THE NEED FOR HUGE INCREASES IN RATES. AMEND THE
INSURANCE COMPANY INVESTMENT POLICIES, REBUILD THE RESERVES, AND YOU ONCE
AGAIN HAVE A STABLE RATE ENVIRONMENT. PAUL ~C~OVIELLO, CFP PRESIDENT LINDEN
ASSET MANAGEMENT, INC. (!AUTHOR!)