Oh Sorry, When an insurance company has to go to the outside for a reserve review, which will be completed within the next 30-60 days; the Actuaries will conservatively place their numbers on it, so as they WILL NOT BE Wrong.
If they are too low, they will be held accountable and probably be sued.
The OTHER REASON is the US companies have been underpricing their policies since (at least) 1995.
THis is called the "soft Market". Underwriters were chasing premium dollars to invest, so they underpriced their products for past five years.
We call it Cash Flow underwriting. They are not the only insurance company to do this. The largest one was Reliance National, seized by the Dept of Ins about a year ago.
We have read the downgrades and based on the financial status of the company they are somewhat justified. We are asking you where were you with your insurance info before now', Why have you not answered lionbaum's direct question? and based on your knowledge do you think the LOC is 50/50? OR are we all dreamers.