PWCC Statement on Recent Card Trimming Concerns

[70ToppsFanatic]

Originally Posted by Aquarian Sports Cards

I believe in the stockholder statement that revealed the $800k reserves they indicated they have no insurance for guarantee returns. Why would you have a contingency fund if you carried insurance?

Because anninsurname policy usually also has a deductible that the insured needs to meet first.

I am the treasurer of a national non-profit company that has some potential liability concerns. We carry liability insurance but not from the first dollar. Therefore we also have a reserve that can be used to cover any deductible claims expenses that might arise.

I don’t know of any well managed, publicly traded company that doesn’t carry sufficient insurance coverages to protect themselves. It would be a big surprise if a company like PSA was trying to self-insure something like this .

[Peter_Spaeth]

Originally Posted by 70ToppsFanatic

Because anninsurname policy usually also has a deductible that the insured needs to meet first.

I am the treasurer of a national non-profit company that has some potential liability concerns. We carry liability insurance but not from the first dollar. Therefore we also have a reserve that can be used to cover any deductible claims expenses that might arise.

I don’t know of any well managed, publicly traded company that doesn’t carry sufficient insurance coverages to protect themselves. It would be a big surprise if a company like PSA was trying to self-insure something like this .

Let's see what the facts are.

From the CLCT 10K

We have no insurance coverage for claims made under these warranties, and therefore we maintain reserves for such warranty claims based on
historical experience.

Page 17, at the bottom.

[70ToppsFanatic]

Originally Posted by Peter_Spaeth

Let's see what the facts are.

From the CLCT 10K

We have no insurance coverage for claims made under these warranties, and therefore we maintain reserves for such warranty claims based on
historical experience.

Page 17, at the bottom.

Thanks for checking. Foolish was to run a publicly traded company IMO

[Peter_Spaeth]

Originally Posted by 70ToppsFanatic

Thanks for checking. Foolish was to run a publicly traded company IMO

It will certainly be interesting to watch how this evolves.

[steve B]

On the cars/odometers analogy, I don't know what auto auctions are required to do legally, but I do know how one handled that sort of stuff in the late 80's.

I worked for a dealership. As most do we got a decent number of cars we didn't want to resell either because of condition, age or they were stuff that was just too hard to sell. (Like a black on black Iroc Camaro with no AC... )
so we sent them to a wholesale auction.
They ran 4-5 different lanes of cars, and the ones I had the most experience with were the A lane cars. Old worn out high mileage, crash damaged..

The sales in the A lane were very nearly as-is. And very little was disclosed. The only car we had returned was one with a non-disclosed bent frame. The buyer figured it out before leaving the lot, had it examined by the auctions shop that existed just for that sort of dispute, and the auction company handled it quickly as the arbitrator. We got to keep the car, but sold it the next week with the damage disclosed, and got nearly as much.
There was the occasional dealer, usually smalltime who would try to get that sort of thing through regularly, and after a few times getting caught and being difficult about the sale being rejected they were thrown out. In at least one case bodily- what a fun day that was, even the sleazy dealers hated him.

[Aquarian Sports Cards]

Originally Posted by 70ToppsFanatic

Because anninsurname policy usually also has a deductible that the insured needs to meet first.

I am the treasurer of a national non-profit company that has some potential liability concerns. We carry liability insurance but not from the first dollar. Therefore we also have a reserve that can be used to cover any deductible claims expenses that might arise.

I don’t know of any well managed, publicly traded company that doesn’t carry sufficient insurance coverages to protect themselves. It would be a big surprise if a company like PSA was trying to self-insure something like this .

Again, read the stockholder statement. It states pretty unequivocally that they do NOT carry insurance on their guarantee.

EDIT: Peter had my back. Thanks.