I believe they originally had a reinsurance policy from Lloyd's of London. I'll bet that the rates got too high and PF is now "going bare". Randy is a great guy, but my guess is that there is no real backing to PF beyond the annual premium income. Anyway, this is what we have to assume in the absence of evidence to the contrary. If true, a cessation of any of US majors would likely bankrupt the coverage, since more than 119/7500 of the members will collect their $7500. I suppose PF could keep going for a while, as claims are paid out from the fees of new members who join out of fear of the second failure. If the second failure does not happen, this strategy might even succeed. But as long as you're gambling, why not just gamble that your miles will survive?