Reformed Venezuelan Insurance Law to Combat Health Insurance Abuses

[IndianaGreen]

Reformed Venezuelan Insurance Law to Combat Health Insurance Abuses

By Tamara Pearson - Venezuelanalysis.com

Last month the government forcefully expropriated the insurance company La Previsora. The company was linked to three banks that were nationalised at the end of last year for violating banking regulations. La Previsora was also generating losses, fraud, and was two months behind on its payments for contracts with public institutions.

La Previsora is now run by the government and forms part of the new National Socialist Network of Insurance and Mixed Social Assistance.

In response to the situation with La Previsora, the reformed law also prohibits financial links between insurance and banking sectors. Banks can not now oblige their clients to take out insurance with a connected company or sell policies through bank tellers.

The change is also in response to the 1994 financial crisis in Venezuela, when banks that had shares in insurance companies pulled down those companies and clients could not receive benefits.

Responding to the inaccessibility of insurance for poorer sectors, Sanchez said that now La Previsora Insurance, as a state company, would offer “solidarity” policies for the excluded sectors of society, including organised sectors such as the communal councils.

http://venezuelanalysis.com/news/5609

[Arctic Dave]

1. No one? Are all the usuals enjoying the 3 day communist holiday weekend?

[Demeter]

2. Viva Chavez!

There's one man who could get a H1-B with my blessing, as long as he came here to take over from our corrupt CORPORATING POLITICAL HACKS.

[ThomCat]

3. Will we get anything even resembling this level of reform

in this country?

Not a state owned insurance company, but the laws separating banks from insurance. Could anything like that happen here?

With lobbyists writing our legislation? I doubt it. :(

[IndianaGreen]

4. We need an American version of the Bolivarian Revolution

which began with a new Constitutional convention and a new judiciary that undercut the legal advantages the corporations and the wealthy had over the workers.

[Joe Chi Minh]

5. That scoundrel, Ugo, at it again! I don't know! Before you know it, South

America will be full of welfare states like those pesky Scandinavians!

[Judi Lynn]

6. Amazing. It's only a dream here, to our deepest detriment. Veneuelans are damned LUCKY now,

and they waited so long for this day to arrive. Hope they are going to be able to keep their better world.