Here is the latest from the Insurance Journal.  They have just arranged to "borrow" more $$ in the event of a storm, which in effect would put more assessments on all the insured people over the entire state.  They already have about 6-8 more years of assessments just to pay off the 04/05 storms.  I have also cut and pasted the one comment that someone made to this article and it tells you a lot:

Florida's Citizens Secures $1.75 Billion for its High Risk Account

June 20, 2008

This amount is in addition to the $1.6 billion bank credit line obtained for the personal lines account and the commercial lines account, according to board chairman Bruce Douglas.

"We have completely restructured the liquidity program, which will benefit all Floridians if a disaster were to strike Florida," said Douglas.

Citizens sold $1.75 billion of one- and three-year securities at yields ranging from 2.5 percent to 4.37 percent. The financing provides Citizens access to cash it may need to pay future claims in its high-risk account.

Additionally, Citizens recently completed the purchase of private reinsurance for the high-risk account for the mandatory co-payment required to access funds from the Florida Hurricane Catastrophe Fund in the event of disaster. The purchase of reinsurance in the high-risk account transfers over $450 million of potential risk and assessments from Citizens' customers and all Floridians to the private insurance market.

Sharon Binnun, Citizens' CEO reported that its rating with Moodys increased from A3 to A2 and Citizens has received the highest rating possible for short term municipal credit."

Source: Citizens Property Insurance Corp

Subject: Simply amazing

This is a real eye opening article posted on the Florida Insurance Council website discussing the Claim Crisis and the FL Catastrophe Fund that provides in depth commentary about Citizens of FL claims handling capabilities.

http://www.flains.org/content/view/1574/38/

You'll also find this link very informative about the THOUSANDS of licensed FL staff, independent, public adjuster licenses issued in FL through September 07 (numbers show resident and non resident). Very interesting as well are the numbers of adjusters used during Andrew in FL. It makes you wonder how well prepared FL Citizens will be to handle the claims should an Andrew size storm hit FL when the 6,000 independents they say are on the vendor rosters doesn't come close to the number of Independents used in FL after Andrew (by all carriers) as well as the many other factors which would change the numbers of adjusters need in a 2008 storm the size and strength  of Andrew. The newest RFP recommendations for 30 vendors (https://www.citizensfla.com/about/m...;when=Past">see 6/18 Claims Committee documents for names here on left column item 03E ) for 9/08 daily and 09 cat vendors lists about 4200 adjusters available for those vendors and we all know that just because someone took the face to face training doesn't mean any guarantee the adjuster would be available to work Citizens claims if they have accepted an assignment with other carriers. Here's the license info referred to above:

http://www.flains.org/content/view/752/51/

Everyone needs to read all of this, TWICE. As I said over 6 months ago, just because its Citizens and their funding is now questionable, there is no guarantee an adjuster will get all his billing paid if they go under, and that is very possible on a massive disaster. With so many rules and regs, and their being so top heavy, I personally will not work for them. I don't mind regimentation, but they have gone all the way with it. As Hood says repeatedly, KNOW BEFORE YOU GO.  If a minimal event occurs, I see no problems with them financially, but if the BIG ONE hits, there will be trouble in river city.

Fellow cat adjusters, staffers and other interested adjusters,as well as every florida policy holder.

The in depth report at the botton of dimechimes statement was made by one of the formost economic institutions in the USA

It should be a MANDATORY READING for anyone who lives in, or intends to work in, the stare of Florida.

11. Thirty percent of each dollar paid for flood insurance coverage goes to private
insurers participating in the NFIP Write‐Your‐Own (WYO) program. These insurers play
the role of financial intermediaries between policyholders and the NFIP but do not bear
any of the risk. Over the period 1968‐2005, these private insurers received over $7.4
billion (excluding the loss adjustment expenses for which we do not have data) in fees.
Turning to the financial operation of the program, prior to the 2005 hurricane season,
which inflicted nearly $18 billion in flood claims, the NFIP had a cumulative deficit of
about $3 billion after 37 years of operation.

Like to hypothacate who will be the winners and loosers in a food senairo?  See the NFIP pays the WYO to sell the policy, pays for them to servive it AND pays the loss.

This is only the tip of the iceberg that sunk the Titanic. If you have the guts to read it all, then you are in for a suprise of a lifetime

Anyone that thinks that a Heavy Florida Hurricane hit will be their salvation, may just find  that it becomes their ruination

http://grace.wharton.upenn.edu/risk/library/Wharton_LargeScaleRisks_FullReport_2008.pdf

I will post more later but the State of Florida has no business being in the insurance business.

Dave, thanks for pointing out that link to the Wharton report from the FL Ins Council website. It says chapters 3 and 13 deal with FL Citizens policies but there is also great info on pages 49-54 as well as comments through the entire report. to include much info in the preface about Citizens.  Also very interesting is the chapter on Flood insurance and comments throughout the report on wind vs water issues. See page 110 as well for surprising results by FL County on flood claims and page 115 for more info on the 20 billion that had to be borrowed from the treasury to cover flood claims post Katrina in 05. The flood chapter also includes great updates on the congressional hearings and many bills before the house and senate on the multi peril acts and other things we've all been watching this year. Also interesting are the FL regional carrier discussions on the carriers entering the market and info on Poe and Vanguard that went into receivership and the claims that had to be taken over.

I'd have to say that I learned more from reading this report than any training ever obtained through all of my CPCU course work thus far completed. It is an outstanding report that I hope everyone will read to truly understand the property insurance market and the factors driving change in the market thus affecting all independent adjusters as they have to move with the changes. An example I think was on page 69 where it compares the market share in the FL market of the top 20 carriers and how much the scene has changed which will require adjusters to change with it to follow the claims.

I read the report and was flabbergasted. This report should be read by any person who EVER thought about working for a vendor that is working for Citizens. Its not a risk of not being paid anymore, its almost 99.1 % certain.

Many will rush in and loose their shirt.

A very good question Deb, These three vendors would be the only vendors I would CONSIDER ( for 15 seconds)working a Citizens file, but would not work for them on a windstorm if it was an exclusive agreement for Citizens only.  I dont think any vendor can pay adjusters, unless they are paid by the carrier who engaged them. It seems they are not in the mix until 09, do they think it may be workable by then? I think all three are smart not to work for Citizens this year. Leave it up to the under funded vendors who are on the list.

How many adjusters did not get paid after Andrew, because of bankrupt insurance companys ?  How many adjusters working for Poe did not get all their fee bills paid, as the carriers went under in 04 ?

I think the state of Florida will have to Guarantee all vendors, adjusters payment for fee bills and who should trust them, the state is what created this monster. I will stick  with people I know. I have seen hurricanes break insurance companys for over 50 years.

This should be exposed before election day, Washington can straighten it out in the weeks before the big one strikes. Go to 100% Federal government bailout on all "bad things that happen because of weather", in the state of Florida.

  Ray, their shirt may be only the first thing to go, next the trousers, car, wife, house, kids, savings (if anyone has much left), and any hopes of doing a decent job.

BUT, even we who have a combined total of almost 100 years of experience, are not listened too. Everyone wants to reinvent the wheel, thats been working for only 2000 years , more or less.

Only fools rush in where angels fear to tread.

From what you are all are saying...and can't say I disagree.....it's going to come down to those who are gamblers or have blind faith to work the Citizen's claims.  It wouldn't be a stretch to say that every IA is a gambler or a dreamer to some extent, including myself.   But when you throw in all of the other uncertainties and unrealistic expectations, the dreams turn into premature nightmares and you know what hand you're being dealt before picking up the cards.  But if you are a gambler, bet on the come that there will be plenty lined up to fill the slots.  Then, hedge your bet it comes up snake-eyes.

The state of Florida may have a new problem if a cat 4 hits this year. How to get 5,000 hungary broken down people out of their state and the autos/trucks they drove in without gas money to get out after working as adjusters for Citizens Insurance Company for 30 days without pay and no relief in sight.