All insurance companies closed down permanently, their assets seized and sold off to pay down the national debt, and their employees told to get a freaking job. All of their debts would be canceled, and non-transferable. All policies canceled.
Whenever I mention this plan, I'm always confronted by people who ask "Then what will people do, when something terrible happens, that no one can afford to pay for themselves?" My answer has 2 parts:
1) The fact that you even ask this question, shows the damage insurance has done to our society. When you need help, you're supposed to go to your family, your friends, your neighbors, and your church, in that order. In a serious disaster even the government can be called on for help, but a corporation trying to make a profit is not there to help you, and relying on them is just wrong.
2) People will find it a lot easier to recover from disasters, because costs will be lower. Not only would they not be paying for insurance but the cost of goods and services, that are often paid for with insurance, will drop because they will have to.Companies deliberately overcharge for such things, knowing that their customers don't pay for them, themselves. Of course this screws over people who don't have insurance, but the people making the money never care about them. (This includes doctors, medicine, car repair, home repair and probably some other stuff I can't think of) And many employers will be able to pay higher wages, or assist employees with medical costs when they don't have to pay for insurance. (the lower taxes and elimination of rent already discussed will help a lot too)