Picking the Right Company

[titeye]

ok I get that and I agree it doesn't mean that a lower rated company isn't going to pay or not make timely payments.

When I say correlation, I am saying that there is a correlation between not meeting financial obligations and a company having a lower rating. It is nothing more than a risk factor.

The reason for this risk assessment is to determine the statistical probability that payments will be made, or will be made on time. It serves as a metric to use when making any further determinations. It doesn't predict the future nor does it determine whether or not the insurer will pay the insured.

With all due respect, no one is discounting your finance degree. You are correct in your analysis and interpretation of financial statements, as it relates to the financial stability, profitability and/or solvency of a corporation. This analysis not only applies to all businesses, but we can apply the same analysis to one's personal financial situation to determine their financial stability and credit worthiness, as well.

Deborah, the only reason you are getting pushback is your continuous use of the phrase, "timely payments", in your argument as it relates to insurance companies. In your first sentence you say, "I agree it doesn't mean that a lower rated company isn't going to....make timely payments." Yet, in the first sentence of your 3rd paragraph, you go right back to saying it does. "The reason for this risk assessment is to determine the statistical probability that payments.... will be made on time."

The ability to pay on time, or make timely payments based on the interpretation of financial statements may be applied to individuals and certain businesses. The Insurance industry, however, is the exception. These businesses pay claims. Paying claims and the ability to repay loans or creditors owed by an insurance company, on time, are distinctly different.

 

[PrivClientSG]

If I am not mistaken....and it would not be the first time, what is being said is the financial stability of a company is not correlated to the speed of the payment of a claim.
I believe this to be correct.

You are correct. That is what is being said, and that statement (bolded and highlighted above) is also correct.

 

[scagnt83]

Financial analysis of a corporate balance sheet is dynamically different than financial ratings of an insurance carriers reserve practices.

Ratings have nothing to do with how quickly a carrier pays claims. Or even their ability to currently pay claims.

Unless someone has a CLU or a degree in actuarial science.... their piece of paper is nothing but a piece of paper in regards to insurance carrier reserve practices.

 

[PrivClientSG]

Financial analysis of a corporate balance sheet is dynamically different than financial ratings of an insurance carriers reserve practices.

Ratings have nothing to do with how quickly a carrier pays claims. Or even their ability to currently pay claims.

Unless someone has a CLU or a degree in actuarial science.... their piece of paper is nothing but a piece of paper in regards to insurance carrier reserve practices.

The above that I highlighted and bolded is a factual statement. Thank you!

 

[Deborah Armstrong]

What defines successful?
I've seen several people mention that it takes 3-7 years?

I'm looking to learn to sell insurance with hands on guidance. I have previous sales experience from my own consulting to technology services to products to other stuff.

Culture is vital to me, I'm pretty great at identifying good culture, but I really need to know exactly what I need to look for in order to not get trapped or shoot myself in the foot if I join the wrong team and need to switch.

I would also like to know if working with multiple companies is a good or bad idea just starting out, and if it isn't an easy answer then why is it good or bad so I can discern for myself.

I would like to be doing this 8-12 hours a day 4-6 days a week.

I would like to spend about 200-1000 a week on leads as long as I can at least double my investment reliably to come ahead on average 11 out of 12 months out of the year.

I would ultimately like to get to a point where I can make 400k a year from issued policies

I would be through the moon to hit 220k a year and content if I never ended up making more than that a year from then on for whatever reason

I would like to make 120k after business expenses (leads, etc) in less than 2 years

It is vital that I make over 70k within my first year and can put at least 70% of that in my pocket.

Some companies that have reached out to me that I've been talking to are:

Marathon VDH

FFL

US Health

I am in Tampa FL and would prefer to sell Hybrid Remote with in-office being fully optional.

Full remote would be my next choice.

And I do understand Life Insurance better than Health Insurance but have no preference as to which I sell as of right now.

Yes, some say 3-7 others 3-10, but yes about that amount of time. It depends on how much time and effort you put into it.

Are you focused on life or health, or do you want to focus on both?

Are you looking to build your business locally or nationally?

 

[Deborah Armstrong]

I have a CLU and ChFC. Want to know what CLU says?

HS 323 Individual Life Insurance Chapter 20:View attachment 9493

The only time that the timely payment of claims was mentioned in any of these ratings (per the TEXTBOOK) was for C ratings.

I can't imagine anybody actively selling for a company with a C rating. Companies may FALL into a C rating, but no one would sell for a C rated company.

So, B ratings and above... are they solvent? Yes. Can they pay timely? Yes. Will they? Depends on company practices and everything else.

Correct, you made my point. Each one talks about

I have a CLU and ChFC. Want to know what CLU says?

HS 323 Individual Life Insurance Chapter 20:View attachment 9493

The only time that the timely payment of claims was mentioned in any of these ratings (per the TEXTBOOK) was for C ratings.

I can't imagine anybody actively selling for a company with a C rating. Companies may FALL into a C rating, but no one would sell for a C rated company.

So, B ratings and above... are they solvent? Yes. Can they pay timely? Yes. Will they? Depends on company practices and everything else.

Exactly, each category mentions the capacity to pay.

TRIPLE A (AAA) says highest claims paying rating, capacity to honor insurance contracts extremely strong

Double A, very strong capacity to honor insurance contracts...

and so forth and so on

This example exactly makes my point. Thanks for sharing

 

[Deborah Armstrong]

With all due respect, no one is discounting your finance degree. You are correct in your analysis and interpretation of financial statements, as it relates to the financial stability, profitability and/or solvency of a corporation. This analysis not only applies to all businesses, but we can apply the same analysis to one's personal financial situation to determine their financial stability and credit worthiness, as well.

Deborah, the only reason you are getting pushback is your continuous use of the phrase, "timely payments", in your argument as it relates to insurance companies. In your first sentence you say, "I agree it doesn't mean that a lower rated company isn't going to.... make timely payments." Yet, in the first sentence of your 3rd paragraph, you go right back to saying it does. "The reason for this risk assessment is to determine the statistical probability that payments.... will be made on time."

The ability to pay on time, or make timely payments based on the interpretation of financial statements may be applied to individuals and certain businesses. The Insurance industry, however, is the exception. These businesses pay claims. Paying claims and the ability to repay loans or creditors owed by an insurance company, on time, are distinctly different.

The only reason I brought up "timely payments" is because that was the terminology someone else used, so I started using that term for their benefit. My focus was and has always been the better the rating, the more financially stable the company. They were more likely to meet their financial obligations. There is a correlation to a company's financial stability and their ability to meet their financial obligations. That's it. It has always been that.