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  #1  
Old 06-26-2007, 08:37 AM
Morrison Morrison is offline
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Default Florida - Wait a Minute... I have HOW much exposure???

It looks like the State of FL is finally acknowledging how fiscally irresponsible their actions in the Homeowners and Commercial Property market have been. They are looking at using a mixture of re-insurance, Cat Bonds, and ILW's to lock in an expected Loss on a PORTION of their FHCF exposure rather than face the possibility of a huge loss. The coverage as of yet is unplaced. A large portion of the fund would still be unhedged. However, in exchange for about $700M of taxpayer funds this year, they can reduce the maximum possible assessment from about 10% of assessible premium to 5% of assessible premium in a worst case scenario.
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Old 06-26-2007, 11:45 AM
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Source?
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Old 06-26-2007, 11:57 AM
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Subscription only newsletter. I'll post a snippet:

"The Florida Hurricane Catastrophe Fund (FHCF) assisted by its Financial Advisor, Raymond James, has evaluated the feasibility and economics of purchasing risk transfer products for the FHCF for the 2007 hurricane season and beyond. The purpose of these risk transfer mechanisms would be to reduce the potential assessment burden for Florida policyholders from a major storm that would cause the new $12 billion Temporary Increase in Coverage Limit (TICL) to be accessed (The TICL layer provides reinsurance coverage above the $16 billion FHCF layer that was available before the January legislation).
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Old 06-26-2007, 12:09 PM
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Thanks - interesting.....

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Old 06-26-2007, 12:35 PM
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If this is referring to the same thing I heard a snippet of on the local news broadcast on NPR yesterday, they don't seem to hopeful that it will actually happen due to the fact that purchasing the reinsurance will reduce the amount of funds available to pay claims and the possibility that claims will not reach the threshhold but they will still be out the $x million paid to reinsure. Of course, I wasn't fully listening to the whole story and don't remember who exactly they said wasn't hopeful about it. I wandered off in thought and got mad all over again at FL cutting property taxes by taking $2 billion from education! Sorry, I digress...and I don't think my post was at all helpful.
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Old 06-26-2007, 12:37 PM
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Subscription only newsletter. I'll post a snippet:

"The Florida Hurricane Catastrophe Fund (FHCF) assisted by its Financial Advisor, Raymond James, has evaluated the feasibility and economics of purchasing risk transfer products for the FHCF for the 2007 hurricane season and beyond..
And this person doesn't even appear in the Actuarial Directory of Memberships. Hmmmm.
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Old 06-26-2007, 12:54 PM
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And this person doesn't even appear in the Actuarial Directory of Memberships. Hmmmm.
He does have a stadium named after him, though.
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Old 06-26-2007, 12:55 PM
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I wonder what types of products they plan to purchase. Are there some types (non-insurance financial products) out there that would not need to be in place before the event?
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Old 06-26-2007, 12:57 PM
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I wandered off in thought and got mad all over again at FL cutting property taxes by taking $2 billion from education! Sorry, I digress...and I don't think my post was at all helpful.
It's a tough state for educational support. I lived there years ago and it was the same thing.
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Old 06-26-2007, 01:20 PM
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He does have a stadium named after him, though.
After I posted, I wondered if it was the name of an advisory firm rather than an individual. I do hope that some actuaries were involved in analyzing the risk exposure. . .
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And def agree w/ JMO.
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This. And everything else JMO wrote.
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Yup, it is always someone else's fault.
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Depends upon the employer and the situation.
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