About long-term perfectionism insurance company financial strength?
Hello,
I have long-term care insurance near Penn Treaty Network America insurance company.
Just found out that they have a B-minus financial strength rating.
Is B-minus "bad"? Are there stats concerning the dud rate of B-minus companies over the course, say, of 20 to 30 years?
Does anyone know how long they've been B-minus? What's it bear for an insurance company to improve their rating? Where can I find this sort of information?
Thanks!
Answers:
I personally wouldn't write for a company next to a B- rating. You can check with A M Best. They recently downgraded them to B-, the outlook is refusal, and the long term forcast is a BB- for creditor rating.
It can take a great deal for a company to upgrade their rating and it can take years. They will have to show an on the way bottom line for several years. Source(s): Independent Agent
www.ambest.com is going to hold a lot of financial rating info.
I won't sell a policy beside a company that's a B-. For one thing, my errors & ommissions coverage won't cover me, for a low rated company. For another, the concluding carrier I had, that have a rating drop that low, DID go out of business, within 18 months of getting that B- rating.
I don't know of any stats, but I'd be looking pretty tricky at switching to a different carrier. Source(s): agent, 21+ years
B- is not good-- it means that the ratings agencies consider Penn Treaty to be weaker financially than carrier with better ratings, meaning here is a higher risk of valid claims not being salaried and/or significant rate increases. This risk seems to have come roughly, because Penn Treaty has been criticized for claims handling and significant rate increases imposed on current policyholders.
Long residence care insurance carriers are rate by various independent agencies, including AM Best, Duff Phelps, Standard & Poor's, and Moody's. Leading ltci carriers similar to John Hancock, Genworth, MetLife and Massmutual have much better ratings from these agencies than Penn Treaty.
If you recently bought the Penn Treaty policy, you may want to dump it for one from a better company, but if you enjoy had it for some years, changing policies will be relatively expensive (unless of course Penn Treaty hikes its rates on your policy as it has others).
A hurting lesson on why buyers should check a carrier's ratings before buying, not after . . . Your agent should have given you this information even if you did not specifically ask for it, because financial strength is a push button factor in Ltci decisions. Source(s): http://www.nytimes.com/2007/03/26/busine…
I agree with the above. Unless the company is surrounded by the A (A-'s included), I wouldn't touch them with a 10 foot, grim covered, snake infested pole.
Related Questions:
I have long-term care insurance near Penn Treaty Network America insurance company.
Just found out that they have a B-minus financial strength rating.
Is B-minus "bad"? Are there stats concerning the dud rate of B-minus companies over the course, say, of 20 to 30 years?
Does anyone know how long they've been B-minus? What's it bear for an insurance company to improve their rating? Where can I find this sort of information?
Thanks!
Answers:
I personally wouldn't write for a company next to a B- rating. You can check with A M Best. They recently downgraded them to B-, the outlook is refusal, and the long term forcast is a BB- for creditor rating.
It can take a great deal for a company to upgrade their rating and it can take years. They will have to show an on the way bottom line for several years. Source(s): Independent Agent
www.ambest.com is going to hold a lot of financial rating info.
I won't sell a policy beside a company that's a B-. For one thing, my errors & ommissions coverage won't cover me, for a low rated company. For another, the concluding carrier I had, that have a rating drop that low, DID go out of business, within 18 months of getting that B- rating.
I don't know of any stats, but I'd be looking pretty tricky at switching to a different carrier. Source(s): agent, 21+ years
B- is not good-- it means that the ratings agencies consider Penn Treaty to be weaker financially than carrier with better ratings, meaning here is a higher risk of valid claims not being salaried and/or significant rate increases. This risk seems to have come roughly, because Penn Treaty has been criticized for claims handling and significant rate increases imposed on current policyholders.
Long residence care insurance carriers are rate by various independent agencies, including AM Best, Duff Phelps, Standard & Poor's, and Moody's. Leading ltci carriers similar to John Hancock, Genworth, MetLife and Massmutual have much better ratings from these agencies than Penn Treaty.
If you recently bought the Penn Treaty policy, you may want to dump it for one from a better company, but if you enjoy had it for some years, changing policies will be relatively expensive (unless of course Penn Treaty hikes its rates on your policy as it has others).
A hurting lesson on why buyers should check a carrier's ratings before buying, not after . . . Your agent should have given you this information even if you did not specifically ask for it, because financial strength is a push button factor in Ltci decisions. Source(s): http://www.nytimes.com/2007/03/26/busine…
I agree with the above. Unless the company is surrounded by the A (A-'s included), I wouldn't touch them with a 10 foot, grim covered, snake infested pole.
Related Questions: