rightontarget: you state the problems well, but how can the solution be to let the people who are screwing up Citizens now be able to mandate claim settlement procedures on voluntary carriers? If carriers use Citizens\’ money to settle claims, then they\’ll have to use Citizens systems and procedures to get at that money. So, everybody\’s service will go down hill. If, instead, carriers have to use their own money, that will put them in the untenable position of being multi-$billion creditors of Citizens (which has close to a $7 billion 100-year PML just in the high risk account). Companies will do whatever it takes to avoid being in that situation. So, just picture the inevitable policyholder notices — Dear Mr. & Mrs. Policyholder: Unfortunately we must cancel your ex-wind policy due to actions by your agent and his trade association.
If Citizens is sick, fix Citizens — don\’t spread the virus to the already overburdened voluntary market. The next state mandate on homeowners insurers will likely be the proverbial straw that breaks the camel\’s back.
Ok- Maybe I have misunderstood what is going on here. The way I read/interpreted this was to do away with Citizens period. Cover wind under traditional HO policies? My thought was this would be much better than what is going on at Citizens from people I know working inside. Carriers have long term established claim procedures and usually long term relationships with Independent adjusting firm and would never tolerate what is going on with the inexperienced adjusters being brought in by Independents AND Independent firms NOT PAYING the very adjusters who are out their struggling with huge hotel expenses while trying to handle their normal expenses at home all the while being told that the Independent firms haven\’t paid because Citizens hasn\’t paid them. We have people 6 weeks into Wilma adjusting who have not been paid a penny yet. No one can exist like that. I do feel a bit better hearing from some adjusters working in office that the claims are finally coming through to them and being processed which is a step above where they were two weeks ago. We all suffer the costs of the high daily rates paid to inoffice adjusters by way of premiums. It is necessary to pay the competitive rates to get adjusters to work there but Citizens needs to do their part and fix their Catastrophe processing so these adjusters can work once they get there. Why is Citizens depending on 100% Independent firms to handle their losses to begin with? Its obvious we are in a storm cycle necessitating a regular crew who are trained so Citizens of our state can be serviced immediately not weeks later…I can tell you most seasoned adjusters do not want to take assignments there due to problems experienced in 2004 and non payment of fee bills. This year sounds no better from the feedback we are receiving.
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rightontarget: you state the problems well, but how can the solution be to let the people who are screwing up Citizens now be able to mandate claim settlement procedures on voluntary carriers? If carriers use Citizens\’ money to settle claims, then they\’ll have to use Citizens systems and procedures to get at that money. So, everybody\’s service will go down hill. If, instead, carriers have to use their own money, that will put them in the untenable position of being multi-$billion creditors of Citizens (which has close to a $7 billion 100-year PML just in the high risk account). Companies will do whatever it takes to avoid being in that situation. So, just picture the inevitable policyholder notices — Dear Mr. & Mrs. Policyholder: Unfortunately we must cancel your ex-wind policy due to actions by your agent and his trade association.
If Citizens is sick, fix Citizens — don\’t spread the virus to the already overburdened voluntary market. The next state mandate on homeowners insurers will likely be the proverbial straw that breaks the camel\’s back.
Ok- Maybe I have misunderstood what is going on here. The way I read/interpreted this was to do away with Citizens period. Cover wind under traditional HO policies? My thought was this would be much better than what is going on at Citizens from people I know working inside. Carriers have long term established claim procedures and usually long term relationships with Independent adjusting firm and would never tolerate what is going on with the inexperienced adjusters being brought in by Independents AND Independent firms NOT PAYING the very adjusters who are out their struggling with huge hotel expenses while trying to handle their normal expenses at home all the while being told that the Independent firms haven\’t paid because Citizens hasn\’t paid them. We have people 6 weeks into Wilma adjusting who have not been paid a penny yet. No one can exist like that. I do feel a bit better hearing from some adjusters working in office that the claims are finally coming through to them and being processed which is a step above where they were two weeks ago. We all suffer the costs of the high daily rates paid to inoffice adjusters by way of premiums. It is necessary to pay the competitive rates to get adjusters to work there but Citizens needs to do their part and fix their Catastrophe processing so these adjusters can work once they get there. Why is Citizens depending on 100% Independent firms to handle their losses to begin with? Its obvious we are in a storm cycle necessitating a regular crew who are trained so Citizens of our state can be serviced immediately not weeks later…I can tell you most seasoned adjusters do not want to take assignments there due to problems experienced in 2004 and non payment of fee bills. This year sounds no better from the feedback we are receiving.