Posted On: February 14, 2007, 3:35 pm CST

Posted By: Chetooh Mulligan

This non-cancel order is dangerous and here is one reason why: Many of the carriers in Florida were started to take out policices from Citizens. They do not have a lot of surplus. Carriers are restricted to how many policies they can write-it is a function of the surplus. The state can bankrupt these smaller carriers by not allowing them to cancel policies if the ratio is now out of whack due to higher reinsurance costs or even bad losses. All State, State Farm and Nationwide all started smaller Florida only companies to write their Florida business, as did Travelers and others. Can you see the problem now?