Posted On: February 20, 2007, 11:07 am CST

Posted By: LLCJ

First off: A reserve, as someone else pointed out, is a reserve against future loss. Once a claim is filed, an insurer puts a reserve up. I would have thought an adjuster of all people would know this.

Secondly: Profits. Sure, insurance companies are out to make money. Sure, they've made more than usual these last few years. However, I would suspect that the rest of the U.S. would not want their premiums to go up so that Floridians can enjoy lower premiums.

Premiums are calculated based on its own risk. That is, florida premiums are based on Florida risk. The rest of the country should not have to pay for Florida.

This is not about greed. It's about fair markets. you would not expect GM to continue to manufacture an automobile that doesn't sell would you? Would you ask GM to use its profits from other vehicles just to support one money losing auto? No. Why is insurance different? Why do people insist that profitable markets support unprofitable ones?

I don't understand this lack of insurance understanding from so called Insurance professionals.