……”The situation still isn’t perfect: One big storm could wipe out the fund and leave it short of money the next year.”
Hmmmmm how about actuarially sound RATES
• “Actuarially sound” means funding an insurance program sufficient to pay those losses and their related costs which are known or projected from analyses of claims, loss experience and risk factors
Which does not mean that the program must continue to be able to write more insurance next year. As long as it can pay losses and expenses for the policies it writes this year (which it apparently can do by borrowing for the largest of storms). Requiring the program to be around in future years is impractical. Not borrowing would mean that sufficient advance capital would have to be invested, which nobody wants the state to do.
Actuarially sound does not exclude the possibility of unbearably high.
……”The situation still isn’t perfect: One big storm could wipe out the fund and leave it short of money the next year.”
Hmmmmm how about actuarially sound RATES
• “Actuarially sound” means funding an insurance program sufficient to pay those losses and their related costs which are known or projected from analyses of claims, loss experience and risk factors
“Hmmmmm how about actuarially sound RATES”
In Florida? Old people vote I’m afraid. Until we get some folks in office who don’t mind serving a single term, sound rates are fiction.
Which does not mean that the program must continue to be able to write more insurance next year. As long as it can pay losses and expenses for the policies it writes this year (which it apparently can do by borrowing for the largest of storms). Requiring the program to be around in future years is impractical. Not borrowing would mean that sufficient advance capital would have to be invested, which nobody wants the state to do.
Actuarially sound does not exclude the possibility of unbearably high.