INSURANCE: Texas' Frauds & Failures

Texas, which places a premium on superlatives, has the worst insurance laws in the nation. Because of poor enforcement, anybody in the state who can get a short-term loan for $10,000 can start an insurance company. There is nothing to prevent a promoter from writing up his assets far beyond actual value and, on this inflated base, selling stock and insurance. By such devices he can build a company up from nothing, sell out and take a capital gain. For these reasons Texas now has 1,884 insurance companies, more than all other...

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