DOES Anyone Know how Primerica Insurance Works??

[VolAgent]

And in this case, "A Strength Rating does not address the suitability of any particular policy or contract for a specific purpose or purchaser." In other words, the award says little about the benefits of the products sold to the consumer.

A.M. Best includes that in every rating, you're barking up the wrong tree here.

 

[toolbelt]

A.M. Best includes that in every rating, you're barking up the wrong tree here.

I'm suggesting that if these ratings are basically about "are about financial health of a corporation", their issuance has little bearing to the consumer and possibly are more about the profitability on monthly premium rates.

 

[VolAgent]

I'm suggesting that if these ratings are basically about "are about financial health of a corporation", their issuance has little bearing to the consumer and possibly are more about the profitability on monthly premium rates.

Again, barking up the wrong tree. A lot of factors go into an A.M. Best rating. Reserves versus coverage in force, mix of business, how invested, managed, reinsured, and many more. Most of the term companies that get mentioned on here have similar or better ratings, so it really doesn't say what you think it does.

And to say ratings have little bearing to consumers is to gloss over things. While for a consumer, there is little difference between various A ratings, a B rating can be a big deal. Particularly if the policy is more than the state guaranty fund, or has features that would not be protected by the state guaranty fund.

 

[Rob Lion]

FE and GUL are not their market. In the sales world they sell what they have to offer. From what I understand their policies are issued from Primerics Life not a MLM BS..Not defending them of course.

That's my issue with them, Don't spout about protecting families when your nothing but a term policy peddler their the reason why 85 year olds want another 10 year term that they can't get .

 

[toolbelt]

Reserves versus coverage in force,

That is mandated by State laws so any insurer in business is mandated to have reserves to back their policies, so every insurer operating legally meets that standard.. But per Best's footnote, its not a guarantee on the products in any way, and more related to accounting fundamentals in a corporate office.

 

[DHK]

But per Best's footnote, its not a guarantee on the products in any way, and more related to accounting fundamentals in a corporate office.

As it is for EVERY company's ratings.

 

[VolAgent]

That is mandated by State laws so any insurer in business is mandated to have reserves to back their policies, so every insurer operating legally meets that standard.. But per Best's footnote, its not a guarantee on the products in any way, and more related to accounting fundamentals in a corporate office.

Again, you really are barking up the wrong tree, and the more you continue the more I perceive you really don't understand what a good rating means and some of what goes into it.

 

[toolbelt]

Again, you really are barking up the wrong tree, and the more you continue the more I perceive you really don't understand what a good rating means and some of what goes into it.

I think its self-explanatory really; A.M. Best Affirms Credit Ratings of Primerica, Inc. and Its Subsidiaries

 

[VolAgent]

I think its self-explanatory really; A.M. Best Affirms Credit Ratings of Primerica, Inc. and Its Subsidiaries

Yes, and you keep missing it.

Primerica Life’s ratings recognize the group’s risk-adjusted capitalization assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), along with the quality of its investments and favorable reserve profile. Risk-adjusted capitalization ratios reflect a heavy reliance on captive reinsurance solutions to fund its Regulation XXX reserves associated with term life insurance, which gradually will moderate as new business is issued under principles-based reserving practices. The ratings also reflect strong liquidity, as well as solid financial leverage and interest coverage ratios that are within A.M. Best guidelines for these ratings.

A.M. Best believes that the quality of capital for an insurance operating company that has ceded XXX or AXXX reserves to a domestic or offshore captive is not as strong as for an operating company with similar risk-adjusted capital ratios that self-funds these reserves. The statutory capital growth of the operating insurance companies likely will be constrained by continued aggressive dividend payments to Primerica.

Simply having the required statutory reserves will not get you a strong rating. The quality of those reserves matter, as I have been saying all along.

And I hope you are aware, most of the term companies promoted on the site have similar ratings from A.M. Best, even though often their premiums for the same coverage are less. Which is why I have been saying all along, a strong rating is not reason enough to condemn Primerica.

 

[Cornelius]

The link stated PFS has 126,000 agents..Time to go to work..