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Regulatory capture of TN government puts $3.26 billion in insurers’ pockets

Harriet Reid Walzer protests Chattanooga’s smart city program that promises broader, deeper abuses of the people than the existing harms, particularly from abuse of police powers through the state trucking law upon travelers, motorists and others using their cars to locomote or communicate. (Photo David Tulis)

CHATTANOOGA, Tenn., Tuesday, July 4, 2023 — We are uncovering another misfeasance and malfeasance supported by the courts in Tennessee. It is the intentional misreading of the “financial responsibility” law regarding car accidents to create a police power regime requiring everyone on the road to show “proof of insurance,” even though that’s not a requirement of the law.

By David Tulis / NoogaRadio Network

This instance of regulatory capture has been hidden from us until the department of revenue started sending me notices about my not having an insurance policy connected to my 2000 Honda Odyssey minivan. I don’t have insurance because I’m poor. And also, as my reading has shown me, because I’m not required to

Statistia says Tennessee records 2.34 million cars in the state, or 2,346,547 registered “vehicles.” The verage auto insurance premium is F$1,429. This suggests premium inflow to insurance companies like Start Farm and Progressive at F$3.353 billion (F$3,353,215,663).

The state’s skim from that pile is 2.5 percent, under T.C.A. § 56-4-105, or $83.83 million a year.

That reduces the inflow to financial companies from $3.353 billion to F$3.269 billion. That’s still a pretty nice haul — having city cops, county deputies and the Tennessee highway patrol enforcing the inflow into these corporate purses under ultra vires enforcement of the financial responsibility act of 1977.

The whole of the loot going to insurance companies for motor vehicle insurance policies is not tainted. Many people would voluntarily have insurance on their cars, so these premiums would be deducted from the F$3.353 billion figure.

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