patrick.net

The California Insurance Companies have been claiming that they've got the funds to pay the losses suffered by their clients and if they don't they've got reinsurance to boot, and if that fails well the State of California's Department of Insurance well maybe, kinda, might come into play.

Well, we've been seeing some pretty high loss estimates coming out. I kinda doubt the insurance companies are gonna be prompt and diligent towards claim payments. I think they will deny, sue everyone from power companies to city and State to try to cover losses and of course delay payments until well into well people just giving up.

I ain't gonna bother looking up how much in assets the insurance companies have, but the vaunted Re-insurance carrier, General RE (owned by Berkshire Hathaway) only has $17 billion in assets. With all the lawsuits, bankruptcies, bailouts (by and of California), don't expect insurance payouts to happen within your lifetime.