should put some money in their little baby. It’s the only responsible thing to do. They wrote the business, they have to accept the responsibility to capitalize it.
They wrote the business to make money, not lose it! Why put money in a state where you are not allowed to make an adequate return or in a state where you are almost guaranteed of losing money?
Nationwide owes financial stability to its policyholders in other states. The only proper thing to do is not dump any more money down this political swamp.
If the Florida company did go belly up in the event of a bad storm season, do you think the parent company would step in to cover the outstanding claims? Or would they let the Guarantee Fund cover these?
Florida requires that insurors set up little domestic companies in order to write business in their state. NICOF is one of those Florida companies. If they go down the tank, it is only because there is inadequate rate in Florida, and there is no one else to blame except the State government for making such a hostile environment to conduct business.
To answer your question, if the big one hits, NICOF and others in the same boat will probably go toes up…
JMHO
The insurance climate in Florida is so hostile that many carriers are quantifying their investment and leaving the state… Florida is now facing what California faced in the late 80’s early 90’s…insurance carrier revolt. You can’t blame the carriers…if they stay they face stockholder lawsuits…if they leave they only leave a hostile business and legal environment. You can thank plaintiff attorneys and Kevin McCarthy for rate increases almost as much as you can blame hurricanes… Don’t think for one moment that an insurer who underwrites both property and auto don’t look at the combined loss ratios when they quantify investments…they do!
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should put some money in their little baby. It’s the only responsible thing to do. They wrote the business, they have to accept the responsibility to capitalize it.
They wrote the business to make money, not lose it! Why put money in a state where you are not allowed to make an adequate return or in a state where you are almost guaranteed of losing money?
Nationwide owes financial stability to its policyholders in other states. The only proper thing to do is not dump any more money down this political swamp.
If the Florida company did go belly up in the event of a bad storm season, do you think the parent company would step in to cover the outstanding claims? Or would they let the Guarantee Fund cover these?
Probably would let the guarantee fund take the shot. Just how the game is played.
Florida requires that insurors set up little domestic companies in order to write business in their state. NICOF is one of those Florida companies. If they go down the tank, it is only because there is inadequate rate in Florida, and there is no one else to blame except the State government for making such a hostile environment to conduct business.
To answer your question, if the big one hits, NICOF and others in the same boat will probably go toes up…
JMHO
Nationwide is on your side. The check is in the mail. The government will take care of everything. Don’t worry baby…
The insurance climate in Florida is so hostile that many carriers are quantifying their investment and leaving the state… Florida is now facing what California faced in the late 80’s early 90’s…insurance carrier revolt. You can’t blame the carriers…if they stay they face stockholder lawsuits…if they leave they only leave a hostile business and legal environment. You can thank plaintiff attorneys and Kevin McCarthy for rate increases almost as much as you can blame hurricanes… Don’t think for one moment that an insurer who underwrites both property and auto don’t look at the combined loss ratios when they quantify investments…they do!
Fl is not letting companies leave the state. The only way to get out is to allow the company to become insolvent….