Originally Posted by Markingriffin
Okay, my question is, DO ratings really matter?
Do they matter to you the agent and do they matter to clients?
What is the lowest rating that a company can have for you to stay contracted with them?
Are you afraid to be with a company on the watch list?
I'm at the point that I don't trust ratings. They seem to be bias and one step behind always.
I've been in the business for a while but not nearly as long as many here. Up until this point I've also dealt almost exclusively with
MA and Med. Supps, so ratings haven't been that big of an issue.
I don't know about bias (do you have anything specific in mind?) but it makes sense that the rating companies are one step behind at least some of the time.
In this economy the fact that so many companies are on the watch list isn't surprising. Also, moving from A+ to A typically wouldn't be seen as being as big of a deal as moving from A- to B++ or down to B-, C, etc.
My understanding is that ratings are generally more important with life, annuity,
LTC than with Med Supps. But one might argue that low rated supp companies (or those who aren't rated at all) may tend to be unstable and see big rate increases. But that has happened many times with A rated carriers as well and often happens when the carrier tries to buy the block of business with low rates and sometimes also looser underwriting.
Also, at least some E&O carriers will look at the rating of the company too and won't cover you in instances in which the rating was too low. I think this mainly would apply with claims or complaints arising from a company becoming insolvent.
Now everyone has heard of the shenanigans some less reputable LTCi companies have engaged in to avoid paying claims. But one pertinent question is this--Can anyone name a case (especially in more recent times) in which a life insurance company went insolvent and death claims were not paid? What I'm thinking of is that typically such companies are absorbed by another company.
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Who is the spineless individual who disapproved my post (#13) without identifying himself/herself? I stated in advance that I don't have much experience with life insurance. If you're going to down me, then I assume you did the same with markingriffin (who markets life insurance) since I didn't disagree with anything that he posted.
FYI, my box is red because I had the temerity to disagree with the administrator of the forum (Valdet) on a non insurance related political thread several months ago. He gave me 3 or 4 "disapprovals," in a row which also may have violated the rules since I can't give anyone two approvals in a row.
If you've got something to say, grow a set and say it instead of anonymously responding "see your box is red for a reason."
Over 96 Companies Downgraded or on Watchlist
Re: Over 96 Companies Downgraded or on Watchlist
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