Insurance Placement Facility of Delaware
The Facility uses the ISO Lost costs and applies multipliers of 1.919 for dwelling risks
and 1.57 for commercial exposures to obtain the premium rates.
The Facility publishes and supplies the member insurance companies with copies of its
Manual of Procedures. This document includes IPFD’s underwriting standards. At year-end
2005, the Facility’s maximum underwriting limits were $200,000 for occupied dwelling
properties and $750,000 for commercial protected properties.
The Facility closely monitors coverage written on properties located within five miles of
the Delaware shoreline. At December 31, 2005, the Facility has issued 461 policies covering
seacoast properties. These policies represented $43,367,338 in aggregate insurance exposure.
PARTICIPATION AND ASSESSMENTS
Each member shall participate in the writings, profits, losses and expenses of the Facility
in any particular year in the same proportion that its respective premiums written during the
second preceding calendar year relate to the total of such premiums written by all members
during said second preceding year. The participation of all members shall thus be determined
annually and shall be fixed for a period of one calendar year.
The Board of Directors shall determine the expense of operating the Facility and any cash
reserves required to be maintained and shall from time to time assess each member its share of
the expenses and such reserves in accordance with its participation in the Facility and in
accordance with the laws of the State of Delaware. The Board may set a minimum assessment to
be paid by any member. Each member shall make a payment of any assessment within thirty
days receipt of the assessment.