As stated in prior posts, one day the folks who run that states’ insurance will have to go before the taxpayers and acknowledge that they have mislead same taxpayers. Whether its Coral losing money, Citizens insurance who are losing money, or State Farm losing money, all of them deserve to be rate adequate. Just as the taxpayers STILL deserve the opportunity to choose.
1. Start a company with borrowed 5 million.
2. Create a MGA to administer (Ha) the company.
3 Charge 65% of the premiums for doing so.
4. Put together some bulls*it reinsurance
5. Give the keys to FIGA when the wind blows.
6. Let all the citizens and good carriers,if any are left to pay for your loses through FIGA assessments.
7. Pay off the 5 million loan and pocket the rest through your MGA.
CORAL IS JUST ONE OF MANY TO COME IF THE WIND BLOWS. OUR STATE GOVERNMENT WILL BE TO BLAME WHEN IT HAPPENS.
Bill is right, They are a ponzi, but I have just a little different twist.
They set up the carriers with the MGA, But they dont care about their rates being adequate. They just drain the company of revenue then turn it over before the storm if possible, so the legislature doe not come after them like Poe. They do this and support McCartys wifes campaign or Alex Sinks reelection or for that matter any other legislature’s campaign in order to avoid the financial scrutiny of the DFS. It is the job of the DFS and DOI to make sure that any carrier operating in the state has the resources to pay their claims. At this point you can forget that.
WE NEED STATE FARM, NATIONWIDE, ALLSTATE, AUTO OWNERS, HARTFORD, MET LIFE HOME AND AUTO AND ANY OTHER GREAT CARRIER WITH THE QUALITY REINSURANCE NECESSARY TO WRITE CAT COVERAGE IN FLORIDA. JUST GIVE THEM THEIR RATES!
Did you know that if State Farm is allowed to pull out of property and the bulk of that goes to Citizens, that the exposure in Citizens will be over $1 trillion dollars? Without adequate rates and adequate funds the state has set up the most massive catastrophe in the history of state government. Just for those who think the current state idiots are heros. These lovely underfunded startups are certainly no solution.
Living in NY, one of the most heavily taxed areas on the planet, I think you guys should have a state income tax and use that to help pay for insurance.
WHY NOT?
EITHER THAT, or charge higher rates.
Seriously, living out of state, I dont understand the rationale of trying to manufacture insufficient rates.
Coral came in with the best of intentions in my opinion. They didn’t have a great relationship with most of their agents and they didn’t diversify much outside of Palm Beach, Broward, and Dade counties. That’s the answer. Gotta keep the agents happy. Gotta keep the insureds happy, and you have to write in the ENTIRE state.
WHOHHHHH! I dont think so Merill, The reason about 1/3 of our population here in Florida is from New York is because of your outrageous taxes in the North East. The State criminals ( I mean Government) has tried for years to create an income tax here in Florida, Our State Constitution requires 66% of the citizens to approve any new taxes. NOT GOING TO HAPPEN. Florida has been historically a Red State with retired citizens. By the way the second part of your comment is correct, LET THEM CHARGE AN APPROPRIATE RATE.
Thats the problem, people in other states that pay higher taxes are funding your hurricanes. When state farm loses money and wants to get out of the state, they dont really lose money, it comes from policy holders in places like NY.
Places like NY also receive very little benefit historically in comparison to what we pay the federal government.
The money is essentially channeled to the South, and is used as a lewer to get more people to move to the south and the west.
The government has been doing this for years….
So if you live in Florida, dont talk to me about high taxes.
CORAL IS A PONZI. 4 MILLION IS NOTHING IN SURPLUS AND THEY TOOK THE OTHER MISSING 2 MILLION THROUGH THE MGA.
UNIVERSAL PROPERTY AND CASUALTY
ST JAMES INSURANCE COMPANY
MAGNOLIA
FEDERATED
AND ALL THE OTHER START UPS ARE GARBAGE. NO GOOD INTENTIONS, JUST START A CARRIER AND SUCK IT DRY UNTIL THERE IS NO MORE MONEY LEFT OR THE WIND BLOWS AND YOU LEAVE WITH THE CASH. THEY TRULY DONT CARE ABOUT BEING IN BUSINESS FOR A LONG PERIOD.
GET A GRIP MR. SOLVENT.
I do not see anyone commenting about how Coral handled the Wilma claims. Coral still paying those clients who reopened their claims because they hired public adjusters to gain more money so they can go on a nice trip to Europe.. i know several people who gained so much from hurricane Wilma, not just from Coral insurance but also from other carriers who have gone under due to the never ending claims. Give credit where credit is due. Coral was not a scheming company, they were a top notch one who unfortunately was also mismanaged big time.
jessica, you obviously dont understand that insurance is a state matter. We are not paying for your losses. Your carrier files rates in New York based on the loses in New York not Florida. The reason State Farm is leaving Florida is our stupid Governor will not let them get an adequate rate in Florida. By the way historically federal revenue is spent much higher in the North East and California than in the South. Do some research before you say such a thing. We get our money from sales tax, tolls, impact fees on construction, property tax etc. and bed tax from hotels when you guys come down to Disney world. Tennessee also has no income tax. You guys in New York sould go to the Tax Revolt Tea Parties on 4/15/09. I feel sorry for you, having to pay state politicians to handle your money for you.
You sure don’t know your politicians if you think McCarty has a wife.
Yeah rates are high, but they are too low to keep the carriers solvent.
No it is not huge bonuses going to executives.
Yes, the politicians are clueless.
Can we just get rid of them and elect people that will take the time to fix the problem instead of blame the wind or others for the lack of viable insurance products in Florida.
And to all the snowbirds, keep coming to Florida for the same reasons you always have. Warmth, Sun, beaches and lower taxes.
As far as you supporting or paying for the hurricanes in Florida, keep dreaming. your policies up north do not cover ANYTHING to do with Florida. but you believe whatever you want if it makes you feel like you are helping.
It is 76 degrees today, whats it like in rotten old New Jersey or Wisconsin. and gas is $1.96. Just thought you should know
You’d better watch out naming names. St. James is not an insurance company. Universal P&C has been in business SINCE 1996 and is publicly traded. Federated has been in business for more than 15 years and is also a part of a publicly traded company. At least state facts my friend.
Call it what you want. Claims, accounting or underwriting mismanagement. The State of Florida is a breeding ground for poorly capitalized carriers. By pushing out the large carriers through aggressive regulation, Gov Crist has created an opportuity for a few of his buddys to start ins companies and skim off profits at all our expense. The bottom line here is we need carriers in Florida with billions in surplus not 2,4 or even 30 million dollars. Good intentions or not, the people of Florida need to wake up and smell the salt air before its too late.
were set to start agencies, and SF pulled the plug. Those new agents will be put in other states. What passes for leadership in Florida, ie ‘Crist Almighty’, doesn’t seem to understand is that 1) SF is probably the biggest backer of that states guarantee fund and as such, CANNOT BE ALLOWED TO LEAVE!!!!!
2) When SF leaves, they leave. You may or may not like that aspect of SF, but when they say they are going to do something, they do it. I know it’s not fashionable these days to say something, and mean it. Crist is misreading this situation, at the expense and peril of his own citizenry, and not at the expense and peril of State Farm. SF will take care of their agents, with or without fire insurance. And if Crist tries to pull other lines? SF will take care of those agents by filling agency positions in other states. That’s certainly not what SF, the agents or the policyholders in Florida want. But don’t make the mistake of testing SF. They will do what they say they will do, and not look back. I know – they did it in my state.
JR you are correct, out policies up in in good old Wisconsin don’t help pay for your insurance in warm FL, HOWEVER is your governor Christ has his way we WILL be helping to pay for your policies through a National Cat Fund.
BTW, it’s 40 here today, gas is 2.09 a gallon, my HO insurance on a 5 bedroom home is under $400 and my property taxes are under $2400. I like WI.
What bad luck, just when all those SF insd’s will be looking for a solid company to move there business to. Oh well, I guess they can go to Peoples Trust, Oops hurry before they all fail
Tallahassee? The role of Citizens?
Legislature HB1A and 601, Mitigation credits?
Claims made by Public Adjusters? Ceck FIGA reopened claims from So Family days.
Hiring a senior claims executive to run the company in Jan 07?
What else? Poor customer service? Excessive commission to their MGA?
Could you elaborate?
P&C has $544+ million in assets per there end of year 2008 statement. St. Johns has $150 million in admitted assets as of 9/30/2008. Both have been through the storm seasons of 2004 and 2005 and are still here to tell the story about it. Why is it you feel it necessary to slander them?
It’s funny how this article mentions the “State” has had it’s eye on Coral for months… I thought they perform yearly audits to all So. Fla carriers.. I guess they are not doing a good job after all — I think someone made a big accounting error and they are too embarras to admit it…..
Where did you get that info from? NOT FROM BEST! If they are so great then why wont they request a rating from Best?
THEY ARE GARBAGE
Universal has 98 million in surplus NR-5 rating. 100% premiums written in Florida.
St Johns has 49 million in surplus NR-1 rating. 100% premiums written in Florida.
I would not want to write my shed with the above carriers.
State Farm has 63 BILLION in surplus A++XV
Auto Owners has 5 BILLION in surplus A++XV
These are good companies why arent they writing property coverage – Because of Gov. Crist.
DONT FOOL YOURSELF WE NEED GREAT CARRIERS TO WRITE COVERAGE HERE IN FLORIDA!
This entry level insurance class outlines basic principles of insurance, including but not limited to, law of large numbers, ethics, compliance and the role of the guaranty fund with regard to protecting the general public (ie policyholders). THERE IS NO CREDIT FOR THIS CLASS, but it is suggested for those with limited or no insurance background or understanding as a pre-curser for individuals who wish to make a career out of insurance.
Rule 1) Don’t chase the biggest insurer, with the biggest statutory obligation to the guaranty fund, out of your state unless you have fiduciary assets to replace the economic vacuum created if that company leaves.
If you know anything about financial statements then you need to look at surplus. Assets are offset by liabilities. Means nothing in regard to a carriers ability to pay catastrophe loses. State Farm Florida is owned by State Farm The largest and most profitable personal lines carrier in the world. Get a grip Solvent.
SEE YA AFTER THE STORM, IN LINE WITH YOUR CLIENTS AT THE FIGA OFFICE LOOKING FOR PAYMENT!
The reason that people get paid on insurance claims is because the money is due under the contract for damages caused by a covered peril. To my knowledge.. “trips to Europe” aren’t covered on your standard homeowners policy. I’m really tired of insurance companies playing the victim because they were unable to underpay claim because the policyholder had to hire a professional to help them. Even this article references public adjusters as the “cause of Coral’s weakened financial position”. That’s just wrong. If they owe it to the policyholder – they need to pay it. Public adjuster or not. And if they paid it – you’d better believe they owed it.
The problem with the Public Adjusters is that without major disasters they are out if business… So when times are tough they do (whatever) they have to do to drum up business….. Like running commercials all day to reopen claims that have already been paid.
Eloquencia — By the way you wrote you statement, I must say you know nothing about insurance business. Sometimes it’s better to keep those statements to yourself and not post them publicly as they do not make any sense. I think we all know that the damage is done and all involved are suffering due to this crisis. It’s a shame it happened tough.
rather than try to knock my credibility – why don’t you try to explain what it is you think I don’t know and how anything in my previous statement was incorrect. I can’t wait for this one.
Your last comment does not merit an insurance answer. Nancy’s comment mentions Coral is still paying for claims that WERE CLOSED which means people got their money already. However, greedy people not satisfied with what they got hired public adjusters to reopen their ALREADY PAID claims in order to get more money thus adding to the client’s packet – all this equals money in the bank for a nice VACATION TRIP.. not bad… This is what I love about America… there is always money to be made somehow and somewhere..
You are extremely pompous and should avoid slandering companies because they are not large in size. The size of a company does not matter and we have all seen that with the fall of some of our biggest US financial organizations. The most important aspects to an insurance company is premium to surplus dollars, proper reinsurance structuring and spread of risk. The larger companies with the most surplus simply write more premium. The key is to look at the premium to surplus number and their reinsurance programs. Although a majority of the new startups are in trouble financially and wouldn’t survive a large storm, some of the newer carriers are well structured and excellent organizations. The Florida OIR and Governor Crist are responsible for putting most of the newer startup carriers in the situation they are in by requiring enormous mitigation credits which cause rates to be unactuarially sound. The state actually provided surplus to most of these companies through a special government program which gives the carriers surplus at a low interest rate if they write more premium. Then, the carrier is forced to write business they shouldn’t be writing because their interest rates will go sky high if they dont write the business. It is rediculous.
What has happened in Florida’s insurance industry is similar to Fannie Mae and Freddie Mac in the housing industry only on a much smaller scale. The answer to all of our problems is less government but the majority of people are misled and we continue to grow our government.
I had to speak my mind because I am very knowledgable in the industry and I dont like to see people like Bill slamming all of the newer carriers when a lot of them are structured properly. The backbone of all companies is reinsurance as the insurance company simply has a deductible just like an individual homeowner does. If the company is managed properly and the premium to surplus number stay in line, they can survive and provide great service to the people of Florida.
are you suggesting that the first payment that an insurance company pays is always for the exact amount that they owe? Because one of the ways that many carriers get around not having to pay is by sending a payment – any payment, then “closing” the file. Twelve years ago, I had a claim where the insurance company paid me $1,200.00 and “closed” my file. I had to have it “re-opened” (a term most recently used by insurers to belittle the fact that the first payment was insufficient and try to make the policyholder look greedy for asking for what is rightfully theirs – sound familiar?)
I didn’t have enough money to fix all of the damages.. and it didn’t have anything to do with a high deductible or not enough insurance coverage. The insurance company simply didn’t pay what I was rightfully owed under the terms of my contract. I got help and got paid. I didn’t get paid to take a trip to Europe. I got paid just enough to actually fix the damages. You have a skewed view of what consumers are going through with insurance companies.
by the way.. feel free to throw an “insurance answer” my way. I’m fluent in that language.
I agree wholeheartedly that the companies should be allowed to charge the premiums necessary to be able to make them sound and be able to pay the claims. After reading some of the comments on this thread… I’m more concerned about the way Crist and the FL legislature are handling this. It does smack of Freddie and Fannie.
Here’s the bottom line though. I pay my premiums. My home is damaged? I deserve to get paid the amount I’m owed under the policy -no more, no less. That’s not what’s happening out there and that’s why people need help. Best place to get help? A good public adjuster.
I do agree that some so called public adjusters may be out there doing more harm than good. But I don’t think it’s fair to lump them all in the same category. Just as it isn’t fair to lump all insurance claimants into the “fraud” category or attorneys into the “ambulance chaser” category, or all doctors into the “quack” category.. or politicians.. into the “leech” category.. .. well.. ok, so we can lump all the politicians into that category:)
You know, rate adequacy and all that.
How come Citizens Insurance prices are cheaper then Coral Insurance? I thought they were supposed to be the ins. carrier of last resort?
Do they have enough money or will the state take them over next?
IT sounds like they are all at a resort!
We had a Coral Contract in 05 and Coral terminated the contract due to lack of business. Thank God.
As stated in prior posts, one day the folks who run that states’ insurance will have to go before the taxpayers and acknowledge that they have mislead same taxpayers. Whether its Coral losing money, Citizens insurance who are losing money, or State Farm losing money, all of them deserve to be rate adequate. Just as the taxpayers STILL deserve the opportunity to choose.
These start up carriers are a PONZI!
1. Start a company with borrowed 5 million.
2. Create a MGA to administer (Ha) the company.
3 Charge 65% of the premiums for doing so.
4. Put together some bulls*it reinsurance
5. Give the keys to FIGA when the wind blows.
6. Let all the citizens and good carriers,if any are left to pay for your loses through FIGA assessments.
7. Pay off the 5 million loan and pocket the rest through your MGA.
CORAL IS JUST ONE OF MANY TO COME IF THE WIND BLOWS. OUR STATE GOVERNMENT WILL BE TO BLAME WHEN IT HAPPENS.
Bill is right, They are a ponzi, but I have just a little different twist.
They set up the carriers with the MGA, But they dont care about their rates being adequate. They just drain the company of revenue then turn it over before the storm if possible, so the legislature doe not come after them like Poe. They do this and support McCartys wifes campaign or Alex Sinks reelection or for that matter any other legislature’s campaign in order to avoid the financial scrutiny of the DFS. It is the job of the DFS and DOI to make sure that any carrier operating in the state has the resources to pay their claims. At this point you can forget that.
WE NEED STATE FARM, NATIONWIDE, ALLSTATE, AUTO OWNERS, HARTFORD, MET LIFE HOME AND AUTO AND ANY OTHER GREAT CARRIER WITH THE QUALITY REINSURANCE NECESSARY TO WRITE CAT COVERAGE IN FLORIDA. JUST GIVE THEM THEIR RATES!
Couple things…’the insurer had about $2 million less than the $4 million in surplus it should have’.
Why were they allowed to be down $2m before the authorities took notice?
And….’In late December, the carrier had received a $5 million cash infusion to help deal with the burgeoning Wilma claims problem.’
Where did the $5m cash infusion come from?
you guys dont have state income tax in Florida do you?
No state income tax in FL.
I wonder if Coral paid bonuses to its Executives.
Will Florida search for ill-gotten gains before handing the rest of the bill to the taxpayers?
Did you know that if State Farm is allowed to pull out of property and the bulk of that goes to Citizens, that the exposure in Citizens will be over $1 trillion dollars? Without adequate rates and adequate funds the state has set up the most massive catastrophe in the history of state government. Just for those who think the current state idiots are heros. These lovely underfunded startups are certainly no solution.
Living in NY, one of the most heavily taxed areas on the planet, I think you guys should have a state income tax and use that to help pay for insurance.
WHY NOT?
EITHER THAT, or charge higher rates.
Seriously, living out of state, I dont understand the rationale of trying to manufacture insufficient rates.
Yea thats what we need more taxes……
Please stay in New York
Bill,
Coral came in with the best of intentions in my opinion. They didn’t have a great relationship with most of their agents and they didn’t diversify much outside of Palm Beach, Broward, and Dade counties. That’s the answer. Gotta keep the agents happy. Gotta keep the insureds happy, and you have to write in the ENTIRE state.
WHOHHHHH! I dont think so Merill, The reason about 1/3 of our population here in Florida is from New York is because of your outrageous taxes in the North East. The State criminals ( I mean Government) has tried for years to create an income tax here in Florida, Our State Constitution requires 66% of the citizens to approve any new taxes. NOT GOING TO HAPPEN. Florida has been historically a Red State with retired citizens. By the way the second part of your comment is correct, LET THEM CHARGE AN APPROPRIATE RATE.
Thats the problem, people in other states that pay higher taxes are funding your hurricanes. When state farm loses money and wants to get out of the state, they dont really lose money, it comes from policy holders in places like NY.
Places like NY also receive very little benefit historically in comparison to what we pay the federal government.
The money is essentially channeled to the South, and is used as a lewer to get more people to move to the south and the west.
The government has been doing this for years….
So if you live in Florida, dont talk to me about high taxes.
CORAL IS A PONZI. 4 MILLION IS NOTHING IN SURPLUS AND THEY TOOK THE OTHER MISSING 2 MILLION THROUGH THE MGA.
UNIVERSAL PROPERTY AND CASUALTY
ST JAMES INSURANCE COMPANY
MAGNOLIA
FEDERATED
AND ALL THE OTHER START UPS ARE GARBAGE. NO GOOD INTENTIONS, JUST START A CARRIER AND SUCK IT DRY UNTIL THERE IS NO MORE MONEY LEFT OR THE WIND BLOWS AND YOU LEAVE WITH THE CASH. THEY TRULY DONT CARE ABOUT BEING IN BUSINESS FOR A LONG PERIOD.
GET A GRIP MR. SOLVENT.
I do not see anyone commenting about how Coral handled the Wilma claims. Coral still paying those clients who reopened their claims because they hired public adjusters to gain more money so they can go on a nice trip to Europe.. i know several people who gained so much from hurricane Wilma, not just from Coral insurance but also from other carriers who have gone under due to the never ending claims. Give credit where credit is due. Coral was not a scheming company, they were a top notch one who unfortunately was also mismanaged big time.
jessica, you obviously dont understand that insurance is a state matter. We are not paying for your losses. Your carrier files rates in New York based on the loses in New York not Florida. The reason State Farm is leaving Florida is our stupid Governor will not let them get an adequate rate in Florida. By the way historically federal revenue is spent much higher in the North East and California than in the South. Do some research before you say such a thing. We get our money from sales tax, tolls, impact fees on construction, property tax etc. and bed tax from hotels when you guys come down to Disney world. Tennessee also has no income tax. You guys in New York sould go to the Tax Revolt Tea Parties on 4/15/09. I feel sorry for you, having to pay state politicians to handle your money for you.
You sure don’t know your politicians if you think McCarty has a wife.
Yeah rates are high, but they are too low to keep the carriers solvent.
No it is not huge bonuses going to executives.
Yes, the politicians are clueless.
Can we just get rid of them and elect people that will take the time to fix the problem instead of blame the wind or others for the lack of viable insurance products in Florida.
And to all the snowbirds, keep coming to Florida for the same reasons you always have. Warmth, Sun, beaches and lower taxes.
As far as you supporting or paying for the hurricanes in Florida, keep dreaming. your policies up north do not cover ANYTHING to do with Florida. but you believe whatever you want if it makes you feel like you are helping.
It is 76 degrees today, whats it like in rotten old New Jersey or Wisconsin. and gas is $1.96. Just thought you should know
Jake,
You’d better watch out naming names. St. James is not an insurance company. Universal P&C has been in business SINCE 1996 and is publicly traded. Federated has been in business for more than 15 years and is also a part of a publicly traded company. At least state facts my friend.
Call it what you want. Claims, accounting or underwriting mismanagement. The State of Florida is a breeding ground for poorly capitalized carriers. By pushing out the large carriers through aggressive regulation, Gov Crist has created an opportuity for a few of his buddys to start ins companies and skim off profits at all our expense. The bottom line here is we need carriers in Florida with billions in surplus not 2,4 or even 30 million dollars. Good intentions or not, the people of Florida need to wake up and smell the salt air before its too late.
were set to start agencies, and SF pulled the plug. Those new agents will be put in other states. What passes for leadership in Florida, ie ‘Crist Almighty’, doesn’t seem to understand is that 1) SF is probably the biggest backer of that states guarantee fund and as such, CANNOT BE ALLOWED TO LEAVE!!!!!
2) When SF leaves, they leave. You may or may not like that aspect of SF, but when they say they are going to do something, they do it. I know it’s not fashionable these days to say something, and mean it. Crist is misreading this situation, at the expense and peril of his own citizenry, and not at the expense and peril of State Farm. SF will take care of their agents, with or without fire insurance. And if Crist tries to pull other lines? SF will take care of those agents by filling agency positions in other states. That’s certainly not what SF, the agents or the policyholders in Florida want. But don’t make the mistake of testing SF. They will do what they say they will do, and not look back. I know – they did it in my state.
JR you are correct, out policies up in in good old Wisconsin don’t help pay for your insurance in warm FL, HOWEVER is your governor Christ has his way we WILL be helping to pay for your policies through a National Cat Fund.
BTW, it’s 40 here today, gas is 2.09 a gallon, my HO insurance on a 5 bedroom home is under $400 and my property taxes are under $2400. I like WI.
Have a nice day.
Icee
Also, I won’t be retiring to FL
What bad luck, just when all those SF insd’s will be looking for a solid company to move there business to. Oh well, I guess they can go to Peoples Trust, Oops hurry before they all fail
What did the company mismanage?
Tallahassee? The role of Citizens?
Legislature HB1A and 601, Mitigation credits?
Claims made by Public Adjusters? Ceck FIGA reopened claims from So Family days.
Hiring a senior claims executive to run the company in Jan 07?
What else? Poor customer service? Excessive commission to their MGA?
Could you elaborate?
Assets, not surplus. That’s what I said. I noticed you didn’t bring up State Farm Florida. Much smaller company.
St James/ St Johns – It really doesnt matter, all of the companies I stated are garbage with no best rating and very little capital at that is a fact.
They all pay demotech to give them a rating and claim they are sound.
Mr Solvent? your carriers you represent will not be very solvent after a storm.
Bill,
P&C has $544+ million in assets per there end of year 2008 statement. St. Johns has $150 million in admitted assets as of 9/30/2008. Both have been through the storm seasons of 2004 and 2005 and are still here to tell the story about it. Why is it you feel it necessary to slander them?
It’s funny how this article mentions the “State” has had it’s eye on Coral for months… I thought they perform yearly audits to all So. Fla carriers.. I guess they are not doing a good job after all — I think someone made a big accounting error and they are too embarras to admit it…..
Where did you get that info from? NOT FROM BEST! If they are so great then why wont they request a rating from Best?
THEY ARE GARBAGE
Universal has 98 million in surplus NR-5 rating. 100% premiums written in Florida.
St Johns has 49 million in surplus NR-1 rating. 100% premiums written in Florida.
I would not want to write my shed with the above carriers.
State Farm has 63 BILLION in surplus A++XV
Auto Owners has 5 BILLION in surplus A++XV
These are good companies why arent they writing property coverage – Because of Gov. Crist.
DONT FOOL YOURSELF WE NEED GREAT CARRIERS TO WRITE COVERAGE HERE IN FLORIDA!
This entry level insurance class outlines basic principles of insurance, including but not limited to, law of large numbers, ethics, compliance and the role of the guaranty fund with regard to protecting the general public (ie policyholders). THERE IS NO CREDIT FOR THIS CLASS, but it is suggested for those with limited or no insurance background or understanding as a pre-curser for individuals who wish to make a career out of insurance.
Rule 1) Don’t chase the biggest insurer, with the biggest statutory obligation to the guaranty fund, out of your state unless you have fiduciary assets to replace the economic vacuum created if that company leaves.
Rule 2) See rule one.
If you know anything about financial statements then you need to look at surplus. Assets are offset by liabilities. Means nothing in regard to a carriers ability to pay catastrophe loses. State Farm Florida is owned by State Farm The largest and most profitable personal lines carrier in the world. Get a grip Solvent.
SEE YA AFTER THE STORM, IN LINE WITH YOUR CLIENTS AT THE FIGA OFFICE LOOKING FOR PAYMENT!
then I’m Abe Lincoln.
The reason that people get paid on insurance claims is because the money is due under the contract for damages caused by a covered peril. To my knowledge.. “trips to Europe” aren’t covered on your standard homeowners policy. I’m really tired of insurance companies playing the victim because they were unable to underpay claim because the policyholder had to hire a professional to help them. Even this article references public adjusters as the “cause of Coral’s weakened financial position”. That’s just wrong. If they owe it to the policyholder – they need to pay it. Public adjuster or not. And if they paid it – you’d better believe they owed it.
The problem with the Public Adjusters is that without major disasters they are out if business… So when times are tough they do (whatever) they have to do to drum up business….. Like running commercials all day to reopen claims that have already been paid.
Eloquencia — By the way you wrote you statement, I must say you know nothing about insurance business. Sometimes it’s better to keep those statements to yourself and not post them publicly as they do not make any sense. I think we all know that the damage is done and all involved are suffering due to this crisis. It’s a shame it happened tough.
rather than try to knock my credibility – why don’t you try to explain what it is you think I don’t know and how anything in my previous statement was incorrect. I can’t wait for this one.
Your last comment does not merit an insurance answer. Nancy’s comment mentions Coral is still paying for claims that WERE CLOSED which means people got their money already. However, greedy people not satisfied with what they got hired public adjusters to reopen their ALREADY PAID claims in order to get more money thus adding to the client’s packet – all this equals money in the bank for a nice VACATION TRIP.. not bad… This is what I love about America… there is always money to be made somehow and somewhere..
Bill,
You are extremely pompous and should avoid slandering companies because they are not large in size. The size of a company does not matter and we have all seen that with the fall of some of our biggest US financial organizations. The most important aspects to an insurance company is premium to surplus dollars, proper reinsurance structuring and spread of risk. The larger companies with the most surplus simply write more premium. The key is to look at the premium to surplus number and their reinsurance programs. Although a majority of the new startups are in trouble financially and wouldn’t survive a large storm, some of the newer carriers are well structured and excellent organizations. The Florida OIR and Governor Crist are responsible for putting most of the newer startup carriers in the situation they are in by requiring enormous mitigation credits which cause rates to be unactuarially sound. The state actually provided surplus to most of these companies through a special government program which gives the carriers surplus at a low interest rate if they write more premium. Then, the carrier is forced to write business they shouldn’t be writing because their interest rates will go sky high if they dont write the business. It is rediculous.
What has happened in Florida’s insurance industry is similar to Fannie Mae and Freddie Mac in the housing industry only on a much smaller scale. The answer to all of our problems is less government but the majority of people are misled and we continue to grow our government.
I had to speak my mind because I am very knowledgable in the industry and I dont like to see people like Bill slamming all of the newer carriers when a lot of them are structured properly. The backbone of all companies is reinsurance as the insurance company simply has a deductible just like an individual homeowner does. If the company is managed properly and the premium to surplus number stay in line, they can survive and provide great service to the people of Florida.
are you suggesting that the first payment that an insurance company pays is always for the exact amount that they owe? Because one of the ways that many carriers get around not having to pay is by sending a payment – any payment, then “closing” the file. Twelve years ago, I had a claim where the insurance company paid me $1,200.00 and “closed” my file. I had to have it “re-opened” (a term most recently used by insurers to belittle the fact that the first payment was insufficient and try to make the policyholder look greedy for asking for what is rightfully theirs – sound familiar?)
I didn’t have enough money to fix all of the damages.. and it didn’t have anything to do with a high deductible or not enough insurance coverage. The insurance company simply didn’t pay what I was rightfully owed under the terms of my contract. I got help and got paid. I didn’t get paid to take a trip to Europe. I got paid just enough to actually fix the damages. You have a skewed view of what consumers are going through with insurance companies.
by the way.. feel free to throw an “insurance answer” my way. I’m fluent in that language.
I agree wholeheartedly that the companies should be allowed to charge the premiums necessary to be able to make them sound and be able to pay the claims. After reading some of the comments on this thread… I’m more concerned about the way Crist and the FL legislature are handling this. It does smack of Freddie and Fannie.
Here’s the bottom line though. I pay my premiums. My home is damaged? I deserve to get paid the amount I’m owed under the policy -no more, no less. That’s not what’s happening out there and that’s why people need help. Best place to get help? A good public adjuster.
I do agree that some so called public adjusters may be out there doing more harm than good. But I don’t think it’s fair to lump them all in the same category. Just as it isn’t fair to lump all insurance claimants into the “fraud” category or attorneys into the “ambulance chaser” category, or all doctors into the “quack” category.. or politicians.. into the “leech” category.. .. well.. ok, so we can lump all the politicians into that category:)