Clark County (Las Vegas) Binding Restrictions

[RickyG]

So pretty much every carrier we work with placed binding restrictions on all of Clark County starting Friday night for the "Tropical Storm/Hurricane". Firstly, anyone who thought that a freaking hurricane would make it inland all the way to Las Vegas is a fool. Secondly the storm here was very moderate, very mild compared to the regular summer storms we get.

Anyway, I guess I could somewhat understand the carriers playing "monkey see monkey do" based on the hysterical media reports but it's now after 4pm PST Monday, it's clear as a bell out (and had been)- 86 degrees and nary a breeze yet we still cannot bind or make policy changes. I have never seen a binding restriction in Clark County in 12 years, let alone one for a weekend that barely registered an inch of rain and extending into a perfectly clear normal day. Truly bizarre times in P&C

 

[marindependent]

Yep welcome to moratorium madness. We have them for much of the state. One insurer [who shall remain nameless] shut down the entire state of California.

 

[Lisett R]

SMH... I had to close my agency early today since we couldn't do anything. Hopefully the restrictions are lifted by tomorrow.

 

[RickyG]

SMH... I had to close my agency early today since we couldn't do anything. Hopefully the restrictions are lifted by tomorrow.

I am curious how long they are allowed to keep it in place for. Clearly, it is an excuse to not write new business as there is zero logical reason otherwise.

 

[Lisett R]

Hopefully not long. They're already making it hard to write any new business as it is right now.

 

[marindependent]

Hopefully not long. They're already making it hard to write any new business as it is right now.

You should sell in California

 

[Markthebroker]

You should sell in California

 

[Allen Trent]

Hopefully not long. They're already making it hard to write any new business as it is right now.

Losses + Expenses > premiums = not profitable to write business

Really not that difficult to see why carriers are doing what they are doing overall. Especially on a projected storm to do their best to not buy claims on new business. Surplus strains are out there as carriers have surplus invested with projected cash flow needs. having to sell bonds & mortgages to pay more claims or pay higher expenses from inflation & higher reinsurance premiums is not an ideal strategy for cash flow. Carriers are also borrowing to meet cash flow needs rather than sell investments. Writing more new business when others are non-renewing can also cause more cash flow problems as new business has costlier expenses to issue/underwrite/compensate the new business.

Crazy times

 

[RickyG]

Losses + Expenses > premiums = not profitable to write business

Really not that difficult to see why carriers are doing what they are doing overall. Especially on a projected storm to do their best to not buy claims on new business.

Allen the point was there was basically no storm and what little there was had passed as of Sunday night. My point was it was a thinly veiled move to just avoid writing business a few extra days IMO since the potential losses from Hilary were gone

 

[Policy Monkey]

So pretty much every carrier we work with placed binding restrictions on all of Clark County starting Friday night for the "Tropical Storm/Hurricane". Firstly, anyone who thought that a freaking hurricane would make it inland all the way to Las Vegas is a fool. Secondly the storm here was very moderate, very mild compared to the regular summer storms we get.

Anyway, I guess I could somewhat understand the carriers playing "monkey see monkey do" based on the hysterical media reports but it's now after 4pm PST Monday, it's clear as a bell out (and had been)- 86 degrees and nary a breeze yet we still cannot bind or make policy changes. I have never seen a binding restriction in Clark County in 12 years, let alone one for a weekend that barely registered an inch of rain and extending into a perfectly clear normal day. Truly bizarre times in P&C

That's how it works in Florida too. If any part of the state is under a watch or warning, most carriers shut down the whole state.