Because of the many hurricanes in 2004 and 2005 Poe took a $2 billion hit from 125,000 claims. This past May Poe was forced to hand over the last of its subsidiaries to the state because of its inability to pay outstanding claims.
This surcharge is expected to raise $225 million and was approved by the state’s Insurance Guaranty Association.
According to some comments left on the website Poe was “low balling for years” and “Maybe Gallagher should be indicted for sleeping at the wheel and letting ‘takeout’ companies like POE get away with making a fortune and then dumping the problem on the state.”
Are you familiar with this case? If so what light can you shed on the history of Poe and how it was perceived and managed in preceding years?
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