Quote:
Originally posted by DeltAlum
The pool of dollars provided by the members of the group is much smaller than the assets of an insurance company. That pool is accessed when a claim is brought against any member. A relative few large settlements against members could bankrupt the consortium and, conceivably, the weaker members as well.
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I guess I'm not completely clear on this because there's something I don't completely understand. Are you saying that FIPG is a communal bank pool and that if there's 10 million in there and ABC does something bad to get sued for 10 million then the pool is gone and the other fraternities lose their insurance? Or are you saying that fraternities getting sued can lead to a higher rate for other fraternities by insurance companies just like there was a spike after 9/11?
-Rudey
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