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Bank knows they are up $hit creek with the insurance. They are going to give one-off deals, simply not foreclose, forced-place coverage, etc. etc.
CA did precisely what you should NEVER do with a potential risk. You deal with the risk by
-Eliminating the risk. Fix the reason or your approach so there's no risk
-Accept the risk. If the risk is manageable and/or cost effective to fix if it happens, accept.
- Insure or outsource the risk. Buy insurance or pay someone else to cover.
CA tied the hands of insurance companies, ran them out and by doing that assumed the $250BN risk. They transferred the risk from the Ins. Co to the homeowners and taxpayers.
Precisely what NOT to do. Stupid, stupid, stupid move and now they are paying for it. They should've left the Ins. Co alone.
rjp
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In the movies only bad guys sleep in king size beds.
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