American Community Retreating?

[somarco]

Just heard that American Community has been downgraded from a B to a C+ rating by A M Best. Same source indicated they are no longer going to write large group, will be giving "significant" rate increases to small group and no more advance commissions or new appointments after 1/1/10 on individual. Also they are riffing 12% of their workforce.

Just a few weeks ago I got advance appointment paper work for Georgia but I guess it is good I never got around to filling it out . . .

 

[YouGotMyMoney]

I wonder who The Producer Alliance's next flavor of the month will be.

 

[Newby]

What happens if a health insurer goes under?

Do the the people with individual policies go to something else with guaranteed issue? Or are they SOL?

 

[Crabcake Johnny]

American Community Mutual Insurance Co
Print this page
A.M. Best #: 06044 NAIC #: 60305 FEIN #: 381290976

Address: 39201 Seven Mile Road
Livonia, MI 48152-1094
UNITED STATES
Phone: 800-991-2642
Fax: 734-591-4628
Web: American Community : American Community Mutual Insurance Company
Best's Ratings
Financial Strength Ratings View Definitions
Rating: C+ (Marginal)
Financial Size Category: VII ($50 Million to $100 Million)
Outlook: Negative
Action: Downgraded
Effective Date: November 05, 2009
Issuer Credit Ratings View Definitions
Long-Term: b-
Outlook: Negative
Action: Downgraded
Date: November 05, 2009
* Denotes Under Review Ratings. See rating definition

Not good news for AC.

 

[somarco]

Most of the time they sell their block, or what is left of it, to another carrier. Sometimes they simply go away as Mutual of Omaha did when they exited the major med market.

The Unicare block is (as I understand) melding in to Anthem/Wellpoint but that is a unique situation.

Sometimes the folks are just SOL. That has happened more than once and is never fun. That's why I try to stick with known carriers. Certainly MoO is a brand name but I didn't have any business with them when they took a powder . . . and I am damn glad I didn't.

Mark, was PA promoting American Community as part of their $10,000 guarantee that you can't find a better plan anywhere?

 

[YouGotMyMoney]

Somarco, they sure were.

 

[somarco]

So when you gonna ask for your $10,000?

 

[CHUMPS FROM OXFORD]

I am pleased that I NEVER considered writing them for Ohio. Approached many times and I warned my fair share of people.

 

[ABC]

I have a handful of group with them and I put about 30 Individuals with them this year.

I have been selling AC since I first go into the business and have rode the roller coaster with them.

They got killed in the 50+ market because they are stupid.
They were going into counties where no one else wanted the business and writing it. The fact of the matter was they really could not even handle a 50+ group from admin standpoint.

Right now I am happy with the individual products they are offering. In my state they are flat out excluding mental health.
That is ok with me because if you want a low premium you have to pay for your add drugs and anti depressants out of your own pocket.

C+ is bad but they have been here before. As long as they can keep their reserves up I will continue to sell them. IF the reserves drop to a low level then I will have to move everything.

 

[Crabcake Johnny]

IMHO: So goes AC's advances next month, so goes their individual business.