Fla. Policyholders of Failed Vanguard Given Policy Options

March 28, 2007

  • March 28, 2007 at 10:15 am
    Whatever says:
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    Gill, you obviously have the brains of a… well, a fish. Sorry, couldn\’t help myself.

    You clearly know nothing of Vanguard or the issues that brought them down. Neither huge profits (look at their financials, they are online) nor huge bonuses (Billy Sanders nor any of the officers received bonuses since 2004)caused the financial issues that swallowed the company. A combination of \’Mierzwa\’ idiotic caselaw and 6 major storms over a two year period added up to be more than their surplus to premium requirements could handle.

    This isn\’t a Travelers, an Allstate or a State Farm. Merely a small regional carrier that was created to provide coverage to those who didn\’t want to end up in Citizens (or when they were created, the JUAs).

    If you had something more than kelp between your ears, you might look a little further into the issues before you go shooting off your mouth. Either that, or that hook stuck in the corner just keeps those fish lips of yours flapping?

  • March 28, 2007 at 10:42 am
    Panhandle agent says:
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    Gill may not be terribly well informed as to the exact facts, but some of what he says is valid. Blaming Vanguard\’s failure on Mierzwa is similarly nearsighted.

    Vanguard was significantly undercapitalized when it began writing policies, even though it managed to jump through the little hoops required by DOI. For years DOI has bludgeoned legacy carriers while requiring little more than a fistful of twenties and a good sales pitch to form a new takeout carrier. (A peek at Poe\’s house of cards is instructive.)

    Further, Vanguard\’s management was mediocre, mostly castoffs from other carriers\’ ineffectual middle management. Finally, they were grossly, consistently underpriced and wrote business, as preferred, thta other carriers wouldn\’t touch. They started weak and raced downhill from there.

    Vanguard is not the last. Just the most recent. The model has been replicated over and over . . . just a matter of time until things go south.

  • March 28, 2007 at 11:38 am
    LL says:
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    Hmmm….. Can Universal P&C be far behind? Their underwriting method is very intriguing.

  • March 28, 2007 at 2:38 am
    Gill Fin says:
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    Another case of big insurance company sticking it to the policyholder, arbitrarily denying claims and making huge profits while paying giant bonuses to CEO\’s. Whats that you say? Oh, they went belly up? Well, I am sure all that happened right up until they paid out more than they brought in.

  • March 29, 2007 at 3:14 am
    JR says:
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    Demotech number sure were interesting on Universal P&C, not sure where they come up with all that surplus but they sure needed it, sure hope they are not on the short list.



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