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Daniel Benjamin Schwarcz

Selected Works

Articles 1 - 6 of 6

Full-Text Articles in Law

Saving Small Employer Health Insurance, Daniel Benjamin Schwarcz Aug 2012

Saving Small Employer Health Insurance, Daniel Benjamin Schwarcz

Daniel Benjamin Schwarcz

Health care reform devotes substantial attention to resuscitating the small group health insurance markets that serve employers with fewer than fifty full time employees. Unfortunately, a number of interweaving provisions embedded within the Affordable Care Act create strong incentives that, starting in 2014, will tend to undermine this market and, in the process, increase the fiscal cost of reform. First, small employers with predominantly low-income employees will tend to opt out of the small group market. Second, small employers with mixed-income employees will have strong incentives to offer coverage that is neither technically “affordable” or of “minimum value” in order …

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Transparently Opaque: Understanding The Lack Of Transparency In Insurance Consumer Protection, Daniel Schwarcz Aug 2012

Transparently Opaque: Understanding The Lack Of Transparency In Insurance Consumer Protection, Daniel Schwarcz

Daniel Benjamin Schwarcz

Consumer protection in most domains of financial regulation centers on transparency. Broadly construed, transparency involves making relevant information available to consumers as well as others who might act on their behalf, such as academics, journalists, newspapers, consumer organizations or other market watchdogs. By contrast, command and control regulation that affirmatively limits financial firms’ products or pricing is relatively uncommon in financial regulation. This Article describes a remarkable inversion of this pattern: while state insurance regulation frequently employs aggressive command and control consumer protection regulation, it typically does little or nothing to promote transparent markets. Rather, state lawmakers routinely either completely …

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Reevaluating Standardized Insurance Policies, Daniel Benjamin Schwarcz Feb 2011

Reevaluating Standardized Insurance Policies, Daniel Benjamin Schwarcz

Daniel Benjamin Schwarcz

This Article empirically debunks the common claim that homeowners insurance policies do not vary across different insurance carriers. It demonstrates that carriers' homeowners policies differ radically with respect to numerous important coverage provisions. It also reports that a substantial majority of these deviations produce decreases in the amount of coverage relative to the presumptive industry standard, though some deviations increase coverage. Additionally, the Article describes the surprising absence of any mechanisms by which even informed and vigilant consumers could comparison shop among carriers on the basis of differences in coverage. It closes by reviewing various regulatory and judicial options for …

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Will Employers Undermine Health Care Reform By Dumping Sick Employees?, Daniel Benjamin Schwarcz, Amy Monahan Aug 2010

Will Employers Undermine Health Care Reform By Dumping Sick Employees?, Daniel Benjamin Schwarcz, Amy Monahan

Daniel Benjamin Schwarcz

This Article argues that federal health care reform may induce employers to redesign their health plans to encourage high-risk employees to opt out of employer-provided coverage and instead acquire coverage on the individual market. Although largely overlooked in public policy debates, this prospect of employer dumping of high-risk employees raises serious concerns about the sustainability of health care reform. In particular, it threatens the viability of individual insurance markets and insurance exchanges by raising the prospect of adverse selection caused by the entrance of a disproportionately high-risk segment of the population. This risk, in turn, threatens to indirectly increase the …

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Regulation Insurance Sales Or Selling Insurance Regulation: Against Regulatory Competition In Insurance, Daniel Benjamin Schwarcz Jan 2010

Regulation Insurance Sales Or Selling Insurance Regulation: Against Regulatory Competition In Insurance, Daniel Benjamin Schwarcz

Daniel Benjamin Schwarcz

In certain regulatory regimes, including those governing banking and corporate law, firms are permitted to choose among multiple competing regulators. This Article examines the desirability of such regulatory competition in the context of property, casualty and life insurance markets. It analyzes various different approaches to structuring such regulatory competition, including those embodied in two recent reform proposals, the Optional Federal Charter (OFC) and the Single License Proposal (SLP). Ultimately, the Article argues that regulatory competition of any sort would undermine the core goals of insurance regulation, harming consumers, insurers, and third parties.

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The British Approach To Consumer Financial Disputes: A Model For Reform In Insurance Law And Beyond, Daniel Benjamin Schwarcz Aug 2008

The British Approach To Consumer Financial Disputes: A Model For Reform In Insurance Law And Beyond, Daniel Benjamin Schwarcz

Daniel Benjamin Schwarcz

Much of insurance law and regulation is concerned with compensating consumers who have been wrongly denied coverage. But policyholders nonetheless have relatively few realistic options for challenging an insurer’s adverse coverage determination. Litigation is often too slow and costly for those who have recently suffered significant financial loss. Meanwhile, the alternative dispute resolution options that do exist – such as the mediation services that insurance regulators offer or the existing variants of insurance arbitration – are generally either ineffective or unavailable for most disputes. This Article proposes a new way forward by looking to the United Kingdom’s innovative Financial Ombudsman …

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