Insurance Placement Facility of Delaware
As indicated, the Facility reported increased premiums during the period under
examination. The following number of policies were issued during the examination period:
As noted above, the Facility reported losses in 2002, 2003 and 2004. This resulted in
negative Unassigned Funds. The Facility assesses member insurance companies to fund any
short-falls. (See the Participations and Assessments section of this report for more information
on the members’ participation in the Facility’s gains and losses.)
As a small insurer, the Facility’s underwriting results are heavily influenced by swings in
claims activity. During the years under the examination, the Facility’s results reflect the effects
of severe storms and several large fire losses. Losses Incurred as reported by the Facility for the
past six years are as follows:
TERRITORY AND PLAN OF OPERATION
The Facility writes fire, extended coverage, vandalism, and malicious mischief insurance
Reinsurance is neither assumed nor ceded.
Of the 3,422 policies issued by the Facility in 2005, only 123 were on commercial risks.
The other risks are termed dwelling by the Facility.