At the bottom line, an agent should be able to arm the customer with accurate information, whatever that includes.
What twisted logic would tell you that a policy issued in the E&S market is better than one issued in the admitted market?
Judging by how many people I’ve heard say “I feel safer with Citizens because they are backed by the state.”, I think a basic understanding of FIGA would reduce that. A major storm hits, you aren’t worlds safer with Citizens… This discussion came up during the Citizens Taskforce’s meetings.
If a hurricane hits Florida, Citizens and all those small insurers are screwed. Some of the bigger companies like State Farm may have more reinsurance on top of what they are required to buy from the Cat Fund, but a lot of the little guys have limited reinsurance, limited reserves, and are backed entirely by reinsurance from the the worthless Cat Fund. Citizens is about 40% of the Cat Fund.
People are uneducated about insurance in Florida. It’s going to take another hurricane to start waking some of them up. Its amazing to hear that everyone complains about our financial systems being in a mess in this country, but think about it…would they really listen if we told them over and over that there is a problem?
The insurance industry and the legislature have told Gov Crist and the public that there is a major problem here that could cause the state to go bankrupt and end up with a lot of claims going unpaid. They don’t want to hear it. So, I think the only message they will hear is after we get a Katrina or Ike type of hurricane hitting the state, and companies go bankrupt along with the cat Fund and state of Florida. It will be very ugly, and all the drama we saw after Katrina will be miniscule compared to the riots we’ll probably get after a big one.
HERE IT IS FLORIDA AND GOV CRIST….WE’RE WARNING YOU OF THE POTENTIAL FOR A MAJOR FINANCIAL DISASTER. ARE YOU HEARING US???
I’d hire a good lawyer to draft me a script before I talked about FIGA. Any consumer with a home valued at >$500,000 is not fully covered by FIGA and that’s a lot of homes in the Sunshine State.
and am not sure what the problem is teaching clients about the guaranty fund.
As a client, I would want my home insured with a carrier who would not need the benefits of a guaranty fund.
You don’t know what you are talking about. You don’t have a clue. Governor Chriss is doing a fine job handling the insurance quagmire in the state of FL
“The legislation implements a so-called rate “glide path” capped at 10 percent until Citizens’ rates are actuarially sound.”
ok, if you noticed this line in the article, this is why i think that floridian legislature needs to open their eyes, including the governor. so if the premiums are not sound, why do you think state farm and many others have left the market. they would not allow those folks an increase but they can say the state funded needs to be. WOW! if i were an agency, i’d find me a lawyer and sue the heck out of florida. drive the state into further financial troubles. i would want some money because they are causing me to lose money for loss of business.
i hate to be an agent during this interesting time, especially with it already being HURRICANE Season!
Ivan, apparently you haven’t been paying any attention to the FL market for the last several years. Your posting is either a humorous one or you are totally clueless.
Putting actuaries and politicians in the same room is like Albert Einstien and Barney Frank trying to discuss the housing crisis. There are decisions based on reality and those that are politically and emotionally driven. Guess which ones work out the best in the long run?
At the bottom line, an agent should be able to arm the customer with accurate information, whatever that includes.
What twisted logic would tell you that a policy issued in the E&S market is better than one issued in the admitted market?
Judging by how many people I’ve heard say “I feel safer with Citizens because they are backed by the state.”, I think a basic understanding of FIGA would reduce that. A major storm hits, you aren’t worlds safer with Citizens… This discussion came up during the Citizens Taskforce’s meetings.
If a hurricane hits Florida, Citizens and all those small insurers are screwed. Some of the bigger companies like State Farm may have more reinsurance on top of what they are required to buy from the Cat Fund, but a lot of the little guys have limited reinsurance, limited reserves, and are backed entirely by reinsurance from the the worthless Cat Fund. Citizens is about 40% of the Cat Fund.
People are uneducated about insurance in Florida. It’s going to take another hurricane to start waking some of them up. Its amazing to hear that everyone complains about our financial systems being in a mess in this country, but think about it…would they really listen if we told them over and over that there is a problem?
The insurance industry and the legislature have told Gov Crist and the public that there is a major problem here that could cause the state to go bankrupt and end up with a lot of claims going unpaid. They don’t want to hear it. So, I think the only message they will hear is after we get a Katrina or Ike type of hurricane hitting the state, and companies go bankrupt along with the cat Fund and state of Florida. It will be very ugly, and all the drama we saw after Katrina will be miniscule compared to the riots we’ll probably get after a big one.
HERE IT IS FLORIDA AND GOV CRIST….WE’RE WARNING YOU OF THE POTENTIAL FOR A MAJOR FINANCIAL DISASTER. ARE YOU HEARING US???
It’s very dangerous to openly allow agents to discuss FIGA and the Cat Fund as many will try to use it as a selling point of their particular policy.
I’d hire a good lawyer to draft me a script before I talked about FIGA. Any consumer with a home valued at >$500,000 is not fully covered by FIGA and that’s a lot of homes in the Sunshine State.
Thanks Ringo. No need for a lawyer. I think I’ll just cut/paste your explanation. It’s pretty clear.
and am not sure what the problem is teaching clients about the guaranty fund.
As a client, I would want my home insured with a carrier who would not need the benefits of a guaranty fund.
Isn’t the real use or mention of the FIGI to compete against the E & S companies who are not backed by it?
No, discussing FIGA is designed to allow agents to sell sub-par policies because…at least you can fall back on FIGA.
Mr. Artwork:
You don’t know what you are talking about. You don’t have a clue. Governor Chriss is doing a fine job handling the insurance quagmire in the state of FL
“The legislation implements a so-called rate “glide path” capped at 10 percent until Citizens’ rates are actuarially sound.”
ok, if you noticed this line in the article, this is why i think that floridian legislature needs to open their eyes, including the governor. so if the premiums are not sound, why do you think state farm and many others have left the market. they would not allow those folks an increase but they can say the state funded needs to be. WOW! if i were an agency, i’d find me a lawyer and sue the heck out of florida. drive the state into further financial troubles. i would want some money because they are causing me to lose money for loss of business.
i hate to be an agent during this interesting time, especially with it already being HURRICANE Season!
Ivan, apparently you haven’t been paying any attention to the FL market for the last several years. Your posting is either a humorous one or you are totally clueless.
Keep government out of business!
Putting actuaries and politicians in the same room is like Albert Einstien and Barney Frank trying to discuss the housing crisis. There are decisions based on reality and those that are politically and emotionally driven. Guess which ones work out the best in the long run?
Get rid of Citizens and Charlie Crist!