State suspends Allstate's insurance license

[Joseph Burkeson, CMI]

Originally Posted by gporter

and Citizens continues to grow.

Yes, the next federal bail-out in the making, in the end the risk must be equally spread if insurance is going to work. Look for federal catastrophe insurance modeled after federal flood insurance plan, that way all states will equally share the burden.

The other thing I could see happening is mortgage companies being required secure & pay to insure the mortgage themselves as opposed to pushing that burden off to the borrower as they will be able to aquire that insurance at a much reduced rate.

[gbeaumont]

Originally Posted by gporter

and Citizens continues to grow.

At whose expense?

this state is effectively self insuring, risky!!

Regards

Gerry

[Michael Larson]

Originally Posted by jburkeson1

Yes, the next federal bail-out in the making, in the end the risk must be equally spread if insurance is going to work. Look for federal catastrophe insurance modeled after federal flood insurance plan, that way all states will equally share the burden.

I hope you are wrong but I fear you are right.
Any substantial "bail out" by the Fed will only prolong the agony of a recession.

Originally Posted by jburkeson1

The other thing I could see happening is mortgage companies being required secure & pay to insure the mortgage themselves as opposed to pushing that burden off to the borrower as they will be able to aquire that insurance at a much reduced rate.

Do you really expect them to reduce their profit margins?
Any mortgage insurance will be passed along to the borrower most likely by high interest rates.

[gporter]

70 percent of forclosures are by people who mis-stated their income.

[Joseph Burkeson, CMI]

Originally Posted by mlarson

Do you really expect them to reduce their profit margins?
Any mortgage insurance will be passed along to the borrower most likely by high interest rates.

Who knows it could happen, but if the lenders were responsible for their own insurance no doubt ways & means would be found to reduce costs, but as long as the borrower is the only one responsible to carry the burden of insurance no new thinking will be brought to this problem.