State Governments and Socialism

A current government move to control the means of production—classic socialism when the controls are widespread—is this, involving what’s left of our nation’s insurance industry, at the State level.

In at least three states, lawmakers have proposed legislation to force insurers to pay billions of dollars for business losses tied to government-ordered shutdowns.

Never mind what already agreed policies say. To Hell with signed contracts. Government men Know Better, and being above petty commitments themselves, can’t conceive the idea that commitments actually matter in a free society, in a free market economy.

Some regulators have declared moratoriums on cancellations and nonrenewals of policies.

This is Government assuming control of the insurance companies and dictating what they will produce.

Here is the blatantness of the power grab made manifest:

In Massachusetts, state Senator James [Jamie] Eldridge (d) said that the depth of the coronavirus pandemic has made bold legislative action a necessity. A bill he has proposed would require insurers to pay so-called business-interruption claims to small businesses even if policies contain virus exclusions.

Insurers get reimbursed later? No, they’ll have to apply to Massachusetts’ Progressive-Democratic government-appointed insurance commissioner for that, and the commissioner would be authorized to bill those same insurers, “possibly over years,” to cover the payouts. I am altering the deal; pray I don’t alter it any further.

Of course, all of this is for the best of reasons and soundest of motives. For some politicians, that’s actually true, too, regardless of the misguided nature of their actions.

For most, though, this is just another implementation of Progressive-Democrats’ mantra of never letting a crisis go to waste; they’re just too useful for expanding government power.

Progressive-Democrats and the Law

And contracts.  Since the SARS epidemic of some years ago, insurers have declined to cover losses related to virus or bacteria damage, and they wrote their policies to that effect. State regulators—who controlled and still control the structure of insurance policies and the premiums allowed to be charged for those policies outside Obamacare—agreed.

However.

New Jersey Assemblyman Roy Freiman, a Democrat, introduced a bill that would retroactively rewrite interruption coverage contracts and force insurers to foot some losses for any policyholder with fewer than 100 full-time employees.

Contracts be damned. They don’t fit the Progressive-Democrat agenda, so by Progressive-Democrat-run Government fiat, they must be tossed.

Here’s the kicker, though.

Mr Freiman says he doesn’t know if he has the legal authority to do this, but he says he doesn’t care.

The law be damned too—it’s in the Progressive-Democrat’s way. Don’t get enough of his fellows in the legislature to agree with him and change the law. Don’t get actual voters to agree with him and so get legislators to stand with him to change the law.

No. The Progressive-Democrat already Knows Better; everyone should just get out of his way so he can toss the law without any silly delays from the ignorant unwashed.