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The hard part is, we can't know or control the future. Look at Genworth. They were a good A rated carrier that sold alot of LTC over the last 10yrs. Big change in short time. My guess is 99% of agents that sold their products back then would have said it couldn't happen.
To me, as long as they are an A- rated company or better, and currently in good shape with good products and cust svc, I am fine with it. Genworth probably won't be the last "good" company to have a slide like that unfortunately.
Selling a B rated company, well (to me) that is just asking for potential problems. Doesn't mean there will be, but odds are higher there could be issues than an A rated company.
Most if not all E&O policies will not protect the agent who recommends a policy from a carrier which, at the time of the sale, was rated below A- from A.M. Best.
Unfortunately, that means that any company who falls into B++ or worse status will get effectively pulled from the shelves for most brokers and even, I would expect, many IMOs. And that, I'm afraid, would be like a death blow to a company.
I only recently came to understand this relationship with the E&O coverage and the ratings. If I had known it sooner, I think I would have steered my clients away from even A- carriers. The reason being: they are just too damn close to the edge of the cliff, in my opinion.
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