I wonder how many insurers that “rely heavily” on the federal backstop consider the fact that, at the end of the day:
1) No payouts are happening until the trigger is met, which rises to $200 million y 2020;
2) There’s an insurer deductible of 20% of prior year’s direct earned premium;
3) There’s a co-insurance of 20% by 2020;
4) If there ever is a payout, there are mandatory and discretionary assessments that will be done on carriers way above what was paid out, to 133-140%.
I wonder how many insurers that “rely heavily” on the federal backstop consider the fact that, at the end of the day:
1) No payouts are happening until the trigger is met, which rises to $200 million y 2020;
2) There’s an insurer deductible of 20% of prior year’s direct earned premium;
3) There’s a co-insurance of 20% by 2020;
4) If there ever is a payout, there are mandatory and discretionary assessments that will be done on carriers way above what was paid out, to 133-140%.
It’s got to e paid back over a few short years.
Still excited?