Friday, August 26, 2011

Cantor - ALEC's New Insurance Salesman

It seems that ALEC ALUMNI Cantor may have gotten talking points from the American Legislative Exchange Council (ALEC) for after the east coast earthquake.

While touring the Virginia earthquake area Cantor stated:
 “There is an appropriate federal role in incidents like this,” Mr. Cantor said after touring the damage in his district. “Obviously, the problem is that people in Virginia don’t have earthquake insurance.”
Based on my research this is the worst earthquake in over 100 years on the east coast.
It is so rare - that's all that was on the news for two entire days.

So, based on a quick trip on the web, to insure a $250,000 house for earthquakes on the east coast, will cost you about $100 a year.  So let's assume that just 1,000 people - all with houses worth $250,000 - on the east coast listened to Cantor and ran out and bought insurance.
a year for earthquake insurance
people went out and bought it.
Premiums that will be collected the first year
by the insurance company
Premiums that will collected by the insurance company
by the time the next hundred year earthquake
comes along.

And then you have the interest on that money over the course of 100 years compounding the total on an annual basis. 
That's for only 1,000 people
Pretty slick move - for not having to do anything except have Cantor say:
“Obviously, the problem is that people in Virginia don’t have earthquake insurance.”
Nice chunk of possible change for doing absolutely nothing.
The ALEC private sector insurance company that may benefit from this must be licking their chops - hoping there are more than 1,000 people who will listen to Cantor!
No wonder Cantor always has a smile on his face - he's got the game down pat!
Wonder how much of this will go into an off-shore account?

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