Posted On: May 7, 2009, 3:17 pm CDT

Posted By: Bill

Lets see, So we cant pay our reinsurance coverage to domestic carriers and we are so proud that these carriers who cannot afford private market reinsurance or have enough surplus have set up financing to get through 6 months of no payments from their coverage. Hmmmmm maybe they will wait 18 months instead? or maybe they never will have to wait until Obama can convince congress to pay for Florida's hurricane. By the way you can get any rating you want from Demotech by paying them. enough. Lets read again what demotech stated.
Florida's domestic carriers have responded to the concern. Petrelli explains:

"So, basically, they've gone to a lender, they've gone to a third party, and they've indicated, 'We've got millions of dollars of exposure. The Florida Hurricane Catastrophe Fund is our reinsurer. It's got this post-funding capability. And there's a possibility we may not get that money in a timely manner, and we're going to need to borrow some of it.'"

He said carriers have taken different routes. Some have secured the contingency financing with their receivables, while others are using their holding company assets or a corporate resolution authorizing a loan from the holding company if the FHCF monies do not show in a timely manner.

THIS UNCERTAINTY WOULD NOT BE ACCEPTABLE TO ANY OTHER CARRIERS OPERATING ELSEWHERE. IT IS LAUGHABLE IF IT WERE NOT SO SERIOUS.