LTC Insurance for the Uninsurable?

[Arthur Rudnick]

[FONT='Verdana','sans-serif']Another Penn Treaty?[/FONT]​

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[FONT='Verdana','sans-serif']Company offers LTC insurance to high-risk, high-need consumers[/FONT]​

[FONT='Times New Roman','serif']By [/FONT][FONT='Times New Roman','serif']Jaime L. Brockway[/FONT]
[FONT='Times New Roman','serif']Posted: July 27, 2011[/FONT]
[FONT='Times New Roman','serif'][/FONT]
[FONT='Times New Roman','serif']A Souderton, Pa.-based insurance company introduced product solutions designed to cover those who have been or who otherwise would be turned down for long-term care insurance.[/FONT]
[FONT='Times New Roman','serif']United Security Assurance Co. of Pennsylvania now offers LifeStyle Solutions (LSS) and LifeStyle Solutions Select (LSS Select), tax-qualified, pool of money plans, in Florida, Illinois, Missouri, North Dakota, Ohio, Pennsylvania, South Dakota, Texas, and Washington.[/FONT]
[FONT='Times New Roman','serif']The products expand United Security's underwriting guidelines and offers the opportunity to obtain coverage to individuals who have trouble acquiring long-term care insurance such as those with cystic fibrosis, diabetes, cancer, Parkinson's, Multiple Sclerosis or osteoporosis, the company reported.[/FONT]
[FONT='Times New Roman','serif']LSS and LSS Select also offer a network of integrated wellness, HomeWorks and care planning service programs.[/FONT]
[FONT='Times New Roman','serif']"Coverage for long-term care costs is the last large unfunded liability for many Americans," said Bill Neugroschel, CEO of United Security, in a statement. "Many of us have coverage for our lives, our medical needs, our houses and our cars, but we often don't think about how we will cover the cost of long term care. This is a major gap in our financial planning which long-term care insurance can address."[/FONT]

 

[STIBROKER]

wow......just wow......

 

[Arthur Rudnick]

not sure why that hapened, let's try again..........

Another Penn Treaty?​

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Company offers LTC insurance to high-risk, high-need consumers​

​

By Jaime L. Brockway
July 27, 2011

A Souderton, Pa.-based insurance company introduced product solutions designed to cover those who have been or who otherwise would be turned down for long-term care insurance.
United Security Assurance Co. of Pennsylvania now offers LifeStyle Solutions (LSS) and LifeStyle Solutions Select (LSS Select), tax-qualified, pool of money plans, in Florida, Illinois, Missouri, North Dakota, Ohio, Pennsylvania, South Dakota, Texas, and Washington.The products expand United Security's underwriting guidelines and offers the opportunity to obtain coverage to individuals who have trouble acquiring long-term care insurance such as those with cystic fibrosis, diabetes, cancer, Parkinson's, Multiple Sclerosis or osteoporosis, the company reported.
LSS and LSS Select also offer a network of integrated wellness, HomeWorks and care planning service programs.
"Coverage for long-term care costs is the last large unfunded liability for many Americans," said Bill Neugroschel, CEO of United Security, in a statement. "Many of us have coverage for our lives, our medical needs, our houses and our cars, but we often don't think about how we will cover the cost of long term care. This is a major gap in our financial planning which long-term care insurance can address."

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P.S..................

OLDWICK, N.J., JUNE 17, 2011
A.M. Best Co. has downgraded the financial strength rating to B (Fair) from B+ (Good) and issuer credit rating to "bb" from "bbb-" of United Security Assurance Company of Pennsylvania (United Security) (Souderton, PA). Additionally, these ratings have been placed under review with negative implications.
The ratings downgrade of United Security reflects A.M. Best's concerns regarding the company's ultimate parent company, CMS Financial Services Corp. (CMS), and other non-insurance entities within the organization. CMS has been reliant on United Security to service the debt, which was a result of the financing of its acquisition of the company in late 2007. While CMS and its non-insurance entities have made progress in the generation of revenue since the formation of CMS in 2007, CMS has considerable leverage and currently has limited access to capital to support its business needs. Additionally, A.M. Best is concerned with CMS's delay in completing its audited financials over the last few years and believes there will likely be a material decline in the GAAP equity when its audits are finalized.

United Security's ratings will remain under review with negative implications pending the completion of CMS's 2009 and 2010 audited financials. This must be completed before CMS can proceed with its planned purchase of a minority interest in the company and execute its capital development strategy. CMS's management can then move forward with its business plan without the audit distraction.

United Security continues to report a relatively consistent level of profitability, and capital remains adequate to support its current liabilities. Most recently, the company experienced higher than anticipated claims in some of its recently acquired blocks of long-term care business. While United Security has not increased rates in recent years, it continues to monitor all of its business to determine whether rate increases are necessary to offset any unfavorable claims experience. A.M Best notes that the company continues to maintain a sound, conservative investment philosophy generating a steady stream of net investment income.

Yup........... Another Penn Treaty

 

[GreenSky]

Penn Treaty was great as far as claims payments for my clients. Sorry to see them go.

However, would you use a B rated carrier for LTC? With the guarantee funds (at least in CA), is there a downside as far as claims payments?

Rick

 

[Arthur Rudnick]

"would you use a B rated carrier for LTCi?"​

Normally I would not. But, if you're in front of someone with MS, and a 'B' rated company was this person's only option for LTCi, what choice do you have?

As long as the agent fully discloses all the facts, including ratings, past & possible future rate increases (Penn Treaty had a few) the decision then falls of the prospect.

I would however be sure that my disclosure was written and signed by the prospect.

Yes, a state's guarantee fund would cover the policyholder (up to the state's limit) if the company failed. I do not believe that every state has a guarantee fund.