R.I.’s Narragansett Bay Insurance to Use $200M Funding to Expand in East

January 8, 2008

  • January 10, 2008 at 7:44 am
    Jane Logan says:
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    Soros has an interesting past – spend some time on the Internet and decide for yourself if you want the safety of your largest financial asset (your home) controlled by someone like George Soros – from the New York Post 12/14/06:Soros appeal – Soros sets court fight Billionaire investor George Soros filed a claim with the European Court of Human Rights on Wednesday in his bid to overturn an insider-trading conviction surrounding the 1988 purchase of shares in French bank. Soros was found guilty of insider trading by a French court in 2002 for his involvement in a takeover battle for the bank, and fined about $2.9m.

    Based on the amount of reading I’ve done so far, it appears Narragannsett Bay is heavily into a cash flow underwriting scheme. Placing coverage with an unrated carrier over the Fair Plan or a rated carrier is reckless, unprofessional, self-serving behavior and I can’t imagaine why any agent would risk the financial security of their clients by making such a recommendation.

    Demotech Performance ratings of Title Insurance Companies assists in analyzing the industry and its competitive landscape with industry wide calculations for benchmarking, as well as underwriters and group level analysis for competitive assessment

    Demotech provides short term financial ratings – a perfect match for a cash flow underwriting scheme – make some quick cash over two to three years and then exit the market.


    Demotech’s financial stability ratings attempt to gauge the likelihood of a carrier’s solvency for the next 18 months, which is the time period most agents and brokers care about. Demotech’s analysis is usually based on data from the National Association of Insurance Commissioners.

    Still, A.M. Best is the ratings agency producers rely on most. It has a long track record and focuses entirely on the insurance industry, unlike Moody’s, Fitch, S&P’s, Hoover’s Ratings or Weiss Ratings. Best’s Horvath described agents and brokers as the company’s “heaviest users.”

    Most state insurance departments’ producer licensing exams still refer exclusively to A.M. Best as the source for financial strength ratings of carriers, and many errors and omissions policies that cover agents and brokers require them to place business with carriers rated above a certain threshold by A.M. Best, in particular.

    A typical example is the E&O policy that insures the Houston-based brokerage of Brady, Chapman, Holland & Associates (BCH).

    The policy excludes coverage for the insured brokerage in case of insolvency unless, “at the time the insurance placed the subject risk with any of the above-described entities, such entity or entities were rated by A.M. Best as ‘B+’ or higher, or alternatively such entities were guaranteed by a governmental body or bodies and/or operated by a governmental body or bodies.”

    Narragansett is not the answer to the coastal insurance crisis and it won’t be long before they’re part of the problem.

  • September 1, 2011 at 2:19 pm
    Pappas says:
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    Dishonest company. I had homeowners insurance and paid in full for the year. They canceled my insurance for no reason. I also saw other complaints from people on the internet that they never collected when made a claim.

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