My friend who is an MBA said that if this were implemented, all the insurance companies would just go to South Dakota, because they have the weakest laws, and then they would be able to sell insurance to everyone and ignore all the other states’ laws. Is that right?

The insurance companies can then just charge as much as they want to people that have expensive preexisting health check conditions. For example you have diabetes, you go to get insurance, the companionship says sure we want to insure you for 1000/month. Who can afford that? The government would have to also tell the insurance companies how much they are allowed to charge for it to help any.

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Infrastructure Investing: Managing Risks & Rewards for Pensions, Insurance Companies & Endowments

Bill to protect small insurance companies inspired by Fremont Insurance case heads to Granholm
A bill designed to give stronger protections to small insurance companies facing hostile takeovers is headed to the governor’s office for her signature after the disorder Senate approved it Tuesday.

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