- Thread starter
- #11
- 2,960
I remember that when studying. Yes.
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I didn't realize some E&O only covers A companies. I'll have to check that on mine.
A or B Rated
- Thread starter smokin goose
- Start date
I remember that when studying. Yes.
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I didn't realize some E&O only covers A companies. I'll have to check that on mine.
Matters to me a lot. I don't like going into A- territory say nothing of B territory.
In fact I won't go into B territory. If B rated is the only option, then the option doesn't exist in my world.
Not everyone agrees with that position, and I understand that. Not every prospect agrees with that position. Whatever, there are other agents who will take care of it for them. And I really hope it works out well, but I'm not getting involved.
In fact I won't go into B territory. If B rated is the only option, then the option doesn't exist in my world.
Not everyone agrees with that position, and I understand that. Not every prospect agrees with that position. Whatever, there are other agents who will take care of it for them. And I really hope it works out well, but I'm not getting involved.
- 17,038
What do you guys consider worse? A B-rated company or a non-rated company?
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- #15
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Lets say this. You can place a client with X company (A rated) for $40 a month or with Y company for $36 a month (B rated). Same commission percentage.
Not trying to start a heated debate, just trying to learn.
Not trying to start a heated debate, just trying to learn.
There is a big difference between a B rated company and an A rated company...however the difference between a B++ and an A-? One level.
That being said, I can't remember ever recommending a carrier for a life policy rated lower than A. It is a lifetime (or at least 20-30 year) commitment and why start off with ANY uncertainty when there are so many other options.
That being said, in the annuity world, most sales often involve much shorter commitments and are more likely to be guaranteed (especially if the agent is smart and spreads the money around).
Every agent should have an opinion on ratings and all things being equal, why not take the higher rated company?
Rarely are things equal however, so the clients who are willing to take the risk to seek higher yields will probably still do it.
After all, a lot of our clients also buy stocks and individual bonds and if things really go bad, I would certainly rather be in a B++ MYGA than a host of other options.
"Compared to what" is one of my favorite statements...it's all relative.
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Company "A" all day.
That being said, I can't remember ever recommending a carrier for a life policy rated lower than A. It is a lifetime (or at least 20-30 year) commitment and why start off with ANY uncertainty when there are so many other options.
That being said, in the annuity world, most sales often involve much shorter commitments and are more likely to be guaranteed (especially if the agent is smart and spreads the money around).
Every agent should have an opinion on ratings and all things being equal, why not take the higher rated company?
Rarely are things equal however, so the clients who are willing to take the risk to seek higher yields will probably still do it.
After all, a lot of our clients also buy stocks and individual bonds and if things really go bad, I would certainly rather be in a B++ MYGA than a host of other options.
"Compared to what" is one of my favorite statements...it's all relative.
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Company "A" all day.
I write a lot of business for one particular fraternal that is not rated (Western Catholic union). Just wrote an app on myself. Their WL rates are great, but if I didn't feel comfortable owning their policy myself, don't know if I would write them.
- 25,900
$4.00 ???.... A Rated.
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Different threshold for traditional agents and FE agents. And I agree with you.
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Brings a whole other degree of non guarantees.
That's right. Maybe a double standard compared to when you see the FDIC stickers on every window and door of a bank, but that's the rule. There are subtle - and legal ways to get the subject into the conversation, but never in the spirit of "it doesn't matter if a company is strong or weak... the state has your back."
I had a case where a couple had their money in 5-year CDs and wouldn't consider an annuity because they wanted FDIC protection. I asked them what their understanding was if the insurance company failed that issued their annuity. They said "We don't know. What would happen?" Since they asked the question, I could tell them about the Guaranty.
I checked this with the state association, and was told we're not required to keep the coverage a secret, just can't use the program to justify placing business in relatively weaker companies.
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If I couldn't meet the prospect's objective another way, I would pass on that business.
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In some states if you use a fraternal that doesn't fall under the guaranty like RNA, the DOI requires the client sign a form stating such. We go from can't bring it up to must bring it up. ha
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