Quote:
Originally posted by shadokat
Wow...all of us will feel the effects in the insurance.
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You don't know that, and that may not be even close to being true.
The reason why the FIPG is no longer the
Fraternity Insurance Purchasing Group, is because sororities did not want to continue to subsidize the higher insurance costs of the fraternities in the FIPG.
We do have the ability to shield our insurance costs from the impact of other groups in our industry. That's a reason for the FRMT's existence. Many national fraternities would love to join the FRMT, but have a track record that would cause the cost to existing FRMT members to rise.
Quote:
Originally posted by Rudey
I know we're in FRMT and I'm really interested in seeing how this all works with insurance. When we all join FRMT, what have we joined?? Does our insurance get pooled with others so if 20 of us put in 1 Million each and there is a $20 million lawsuit against a member fraternity that loses, will it be drawn from that?? That makes no sense so it can't be it but then what the hell is the FRMT? Is it a group to lobby for cheaper insurance costs?
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I don't know how the financing works, but the FRMT is more than a lobbying group. It is a reinsurance group, and I forget exactly how reinsurance differs from insurance.
I e-mailed our FRMT rep with a question about this Kappa Sig incident, and if it will affect us. I should get a reply e-mail by Tuesday, and then I'll post the answer here.
ETA There's an explanation of what the FRMT is in this newsletter:
http://www.frmtltd.org/data/frmt_news/1997_fall.pdf
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