Manhatten Life for Med Supps?
- Thread starter Nikita
- Start date
The only claims an E&O policy would not cover because of the company rating are those that arise out of the company going bankrupt. All other claims are covered just as if the company had an A++ rating.
I use B carriers all the time. Probably 95% of my block is with B carriers.
Have used them off and on for about 5 years in Georgia. No complaints. Using them more this year since one of my "go to" carriers went crazy. Rolled 20 clients to MLIC in the past 60 days.
Have used them off and on for about 5 years in Georgia. No complaints. Using them more this year since one of my "go to" carriers went crazy. Rolled 20 clients to MLIC in the past 60 days.
Their e-app is nice.
Like the others said, the ratings don't matter too much for me... (ever hear of AIG?
).
- 283
How are insurance customers covered if a company goes BK? (more thinking of annuities or WL)
Most states have a guaranty fund.
- 283
I'm in Illinois. State of Illinois about to be downgraded to junk bond status. hmmm
https://www.bloomberg.com/news/arti...-to-one-step-above-junk-by-s-p-over-stalemate
Doesn't matter.. There really is no real money in the guaranty fund. If a company goes under and no one buys them out, the guaranty fund issues an assessment against all the others companies doing business in the state to cover policyholders up to certain limits.
In the case of Med Supp, they would have guaranteed issue.
"Your Medigap insurance company goes bankrupt and you lose your coverage, or your Medigap policy coverage otherwise ends through no fault of your own.
You have the right to buy Medigap Plan A, B, C, F, K, or L that’s sold by any insurance company in your state.
You can/must apply for a Medigap policy no later than 63 calendar days from the date your coverage ends"
Note: didn't notice qualifier of annuities and WL before I posted
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I thought the question related more to current claims rather than future ones.
ie: what happens if the med supp carrier goes bankrupt before it pays current open medicare claims which it is contractually obligated to pay, leaving the policy holder on the hook for what Medicare did not pay.
ie: what happens if the med supp carrier goes bankrupt before it pays current open medicare claims which it is contractually obligated to pay, leaving the policy holder on the hook for what Medicare did not pay.
