TICO Rate Increase

TICO Rate Increase Comments Due Today,
Friday, 30 November 2012

Whereas TICO wishes to increase contributions in the amount of 600% by registrants to the TICO Compensation Fund over the next three years;

and whereas TICO received a report by actuaries stating that the TICO Compensation Fund should be maintained at a dollar level between $20 and $25 million;

and whereas as of March 31, 2012, the TICO Compensation Fund balance was $24.7 million, representing the high end of the TICO Compensation Fund amount stated by actuaries;

and whereas TICO uses the TICO Compensation Fund to cover various expenses that have no relation to consumer or registrant claims;

and whereas TICO, when asked by a registrant, could not precisely account for these various expenses totaling approximately $800 thousand at its Annual General Meeting in 2012;

and whereas the true nature of the 600% increase is believed to provide an avenue for TICO to defray even more various expenditures;

and whereas TICO, upon pure speculation, predicts the TICO Compensation Fund needs more money contributed by registrants;

and whereas registrants believe that it is better to have increases to the TICO Compensation Fund only after there is actually a shortfall below $20 million,

Now therefore: