Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect official policy nor laws

Our fellow Brits across the pond recently voted to unplug themselves from the global power referred to as the European Union. Yes, this was a HUGE deal and the repercussions and ramifications will probably be felt worldwide for years to come. As interesting as it may be to delve into the details of how this vote transpired, I find imagining a U.S.-style referendum far more intriguing. Let’s say there was a Texit (Texas), or a Cali-exit (California), or even Illinexit (Illinois)? Aside from the feasibility of this being possible, let’s simply envision it was so.

Can you imagine the disarray this would cause? Of course, my mind automatically navigates to insurance-related issues. Essentially, the respective state separating from the U.S. would have the opportunity to structure its insurance laws from scratch; a hefty task for any government. Personal insurance would perhaps stay the same in a broad sense, ie. required auto insurance, health insurance offered through your employer, etc. The field in which I feel might be mostly impacted, is commercial insurance. Those businesses with a strong presence in the respective ‘exit’ state, could experience significant business interruption. Whether it be through the loss of local customers or some form of trade relationship with other states, the transition would certainly hurt profits. Which begs the question, would these respective businesses’ claims be honored… I guess that would depend on where the ultimate carrier was domiciled and the deals that were negotiated between said ‘exit’ state and the U.S.

The average American would deem such an idea of a state-exit to be far-fetched. Unfortunately, I bet many of our fellow brits thought the same!

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