"There's never been anything like this...''

[Capricious]

http://tinyurl.com/2humyj





"Citizens Property Insurance of Tallahassee, Florida, a state-run insurer that protects homeowners against hurricane losses, is a casualty. The rate Citizens pays on a portion of the $4.75 billion in securities it has sold jumped to 15 percent from 5 percent at an auction run by UBS that ..."

[SHELLY]

...and so goes the premiums.

A week ago I got my "Dear John" letter from State Farm--guess I'll be joining the Citizens' family along with the rest of Florida.


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[wrobert]

...and so goes the premiums.

A week ago I got my "Dear John" letter from State Farm--guess I'll be joining the Citizens' family along with the rest of Florida.


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Problem is that Citizens has admitted that if a major hurricane hits they will not be able to secure the funding to pay claims. There simply is not the kind of money available for the exposure that has been allowed to occur. Florida will be bankrupt overnight.

[SHELLY]

Problem is that Citizens has admitted that if a major hurricane hits they will not be able to secure the funding to pay claims. There simply is not the kind of money available for the exposure that has been allowed to occur. Florida will be bankrupt overnight.

Even when I didn't have Citizens, I paid premiums. I paid Citizens a chunk of money for the past couple of years along with my State Farm Insurance policy and I also pay a bit with my car insurance. I imagine if Citizens needs more money, the taxpayers of Florida will just have to cough up some more money :idontno:

If Florida can pull money out of its arse to build an airport for 125 PAX a day and suck-and-blow sand on the beaches every year, I'm sure they'll be able to dig a bit deeper to come up with the money for Citizens.

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[scooterbug44]

There is something I am not understanding - people pay insurance companies $$$ for years and years, but whenever there is a big claim, they never have enough funds. Does the money just evaporate? :idontno:

[SHELLY]

There is something I am not understanding - people pay insurance companies $$$ for years and years, but whenever there is a big claim, they never have enough funds. Does the money just evaporate? :idontno:

No, it doesn't evaporate--it goes to pay for CEOs and their cabal of thieves' hefty salaries and generous retirements; it goes to pay salespeople high commissions; it goes to shareholders in dividends and it goes to pay off lobbyists and politicians. Oh...and it goes to pay for stamps when they mail out letters of nonrenewal.

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[Furthur]

I wonder if this is fallout from the jitters being felt in the 45 TRILLION Dollar Credit Default Insurance Market. Looks like the big boys are pulling in their horns.

[wrobert]

If Florida can pull money out of its arse to build an airport for 125 PAX a day and suck-and-blow sand on the beaches every year, I'm sure they'll be able to dig a bit deeper to come up with the money for Citizens.


The issue goes back to what you have been saying though. The money simply no longer exists in the credit market. With everyone pulling back getting someone to do a $25 Billion dollar bond issue would be a very interesting thing. But no problem. We just will no longer allow hurricanes to enter the State. I am sure they can pass some sort of a law against it and then everything will be okay.

[sowalgayboi]

I still like Chris Rocks quote about insurance:

You pay insurance in case $h!t happens. If $h!t don't happen shouldn't they pay you?

[BIGDOG]

I still like Chris Rocks quote about insurance:

You pay insurance in case $h!t happens. If $h!t don't happen shouldn't they pay you?

I like that logic! :biggrin:

[SHELLY]

With everyone pulling back getting someone to do a $25 Billion dollar bond issue would be a very interesting thing. But no problem. We just will no longer allow hurricanes to enter the State. I am sure they can pass some sort of a law against it and then everything will be okay.

...I'm sure Charlie Crist is setting up a task force to work on that as we speak!


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