Additional IB Insurance Coverage

Toonces · Dec 2, 2003

Per 12/1 email:

Beginning December 31, 2003, your securities account equity protection will change. The supplementary protection currently provided by Travelers Casualty and Surety Company of America will be replaced with coverage obtained through Lloyd's of London, the leading insurance market in the world. The first $500,000 of protection will still be provided by the Securities Investor Protection Corporation (SIPC), of which up to $100,000 may be in cash. The additional coverage provided by Lloyd's of London will increase the total protection by $29.5 million per client, of which $900,000 may be in cash, subject to an aggregate loss limit of $150 million...

EMini-Player · Dec 2, 2003

It's good to know my millions are safe with IB

-Fast

version77 · Dec 2, 2003

Quote from Fast_Trader:

It's good to know my millions are safe with IB

-Fast

I am a little pissed that they have capped this baby at a total
aggregate loss limit of $150 Million. Now what will I do?...

Runningbear · Dec 2, 2003

Quote from version77:

I am a little pissed that they have capped this baby at a total
aggregate loss limit of $150 Million. Now what will I do?...

Set up two accounts

ADX_trader · Dec 2, 2003

Would they able to pay if the total amount exceeds a few billion dollars?

easyrider · Dec 2, 2003

It says that each nite IB sweeps your cash into the securities portion of your Universal account so that it will be protected. If you have a Universal account but all you trade is futures, does this still apply?

bungrider · Dec 2, 2003

Quote from easyrider:

It says that each nite IB sweeps your cash into the securities portion of your Universal account so that it will be protected. If you have a Universal account but all you trade is futures, does this still apply?

great question. i haven't enabled my account for futures just because of that...

Eldredge · Dec 2, 2003

Quote from Toonces:

Per 12/1 email:

Beginning December 31, 2003, your securities account equity protection will change. The supplementary protection currently provided by Travelers Casualty and Surety Company of America will be replaced with coverage obtained through Lloyd's of London, the leading insurance market in the world. The first $500,000 of protection will still be provided by the Securities Investor Protection Corporation (SIPC), of which up to $100,000 may be in cash. The additional coverage provided by Lloyd's of London will increase the total protection by $29.5 million per client, of which $900,000 may be in cash, subject to an aggregate loss limit of $150 million...

Some others have joked about the aggregate limit, but my concern is that this limit applies to IB's aggregate limit. It appears to me that each investor has a limit of 29.5 million, and Lloyd's will pay no more that 150 million on the policy. If IB has 5 clients with 30 million, that would max out the policy. If this is the case, I have no idea if 150 mil is anywhere near adequate. Can someone set me strait on this?

abctrade2001 · Dec 2, 2003

Quote from Eldredge:

Some others have joked about the aggregate limit, but my concern is that this limit applies to IB's aggregate limit. It appears to me that each investor has a limit of 29.5 million, and Lloyd's will pay no more that 150 million on the policy. If IB has 5 clients with 30 million, that would max out the policy. If this is the case, I have no idea if 150 mil is anywhere near adequate. Can someone set me strait on this?

I agree. If the 150mil aggregate is for the firm then this is pretty worthless if IB has billions of dollars in accounts.

Was there and aggregate limit with the previous added insurance from travelers?

stock777 · Dec 2, 2003

I see you guys have beat me to the punch.

If the 150 million covers the entire client base, then something is wrong. That's way not enough.