Posted On: April 26, 2006, 3:42 pm CDT

Posted By: Buzzard

So Fam didn't care about 100yr hurr etc.. At one time they were on 65% of the first $5mill of any one acct.. In other words if a Cat 4 storm hit Boca Raton after 20 Condo assns. were hit they were broke. Do the math their surplus before Charley was about $60 mill. 65% of 5mill is $3.25 mill x 20=$65mill. This isn't rocket science. Now Gallagher wants the state to stay on this business till the ann renewal date at the low rates. The state has never done this before why should they do it now? It's like saying set up a start up company write at lower than the mkt rate hope the wind doesn't blow, take your commissions out by setting up an MGA. When the wind blows your gone. Takes away the policyholders responsibilty to make a decision based on the carriers ability to pay. If they want the state guarantee with Citizens they should pay the higher Citizens rates.