Only in the case of insolvency.. Otherwise the E&O pays no matter the rating.
Motorists FE Policy... Hmm...
- Thread starter Rearden
- Start date
Only in the case of insolvency.. Otherwise the E&O pays no matter the rating.
- 19,647
Not sure what being from Tennessee had to do with it... That was them thare crazy Caintucky folk.. Might ought to ask JD and Newby.. (names have been changed to protect the guilty)
- 17,072
Last time I saw JD he took a couple of shots at me cause he thought I wuz one of them guvment guys after his moonshine.
- 3,165
REALLY?? U are pointing out the EXCEPTION, not the rule! Why dont u look up ALL the carriers that have been around awhile & folded...then tell me how many were A, B, etc? U are also pointing out an exception in time, when the Savings & Loans crash & a stock market crash in them times, so a lot of turbulence! U cant take 1 10yr period of history and say "see, look at all these companies that failed!"
If ratings (in your mind) dont matter, then how is the public to evaluate companies at all....if their name is cool? You are IN the insurance industry, so u being comfortable with ONE B rated company is fine, but Ive bet you have NEVER told your clients (who dont know the industry like u do) "Hey Mr Jones, ratings dont matter".
I would agree to disagree with your ratings assessment!
- 15,041
Companies tend to fail in bad economic times, not good. Just something to keep in mind.
- Thread starter
- #38
- 5,305
The US is still rated AA+ despite our country's obvious, apparent, massive financial insolvency to come.
REALLY?? U are pointing out the EXCEPTION, not the rule! Why dont u look up ALL the carriers that have been around awhile & folded...then tell me how many were A, B, etc? U are also pointing out an exception in time, when the Savings & Loans crash & a stock market crash in them times, so a lot of turbulence! U cant take 1 10yr period of history and say "see, look at all these companies that failed!"
If ratings (in your mind) dont matter, then how is the public to evaluate companies at all....if their name is cool? You are IN the insurance industry, so u being comfortable with ONE B rated company is fine, but Ive bet you have NEVER told your clients (who dont know the industry like u do) "Hey Mr Jones, ratings dont matter".
I would agree to disagree with your ratings assessment!
- 26,133
What is the rational to use A- company when there are A++ and A+ companies out there.
Why does an agent say "I will write A- but not B++" why not Only A or A+ and above?
Why does an agent say "I will write A- but not B++" why not Only A or A+ and above?
REALLY?? U are pointing out the EXCEPTION, not the rule! Why dont u look up ALL the carriers that have been around awhile & folded...then tell me how many were A, B, etc? U are also pointing out an exception in time, when the Savings & Loans crash & a stock market crash in them times, so a lot of turbulence! U cant take 1 10yr period of history and say "see, look at all these companies that failed!"
If ratings (in your mind) dont matter, then how is the public to evaluate companies at all....if their name is cool? You are IN the insurance industry, so u being comfortable with ONE B rated company is fine, but Ive bet you have NEVER told your clients (who dont know the industry like u do) "Hey Mr Jones, ratings dont matter".
I would agree to disagree with your ratings assessment!
You are welcome to disagree. However, if you look at the list the facts remain.. The ratings haven't meant much over teh years if I company has a B or above. Shenandoah Life had an A+ rating in 2008.. Yes, they had been downgraded to a B when they failed but that proves my point. Agents were running around confidently selling their products ion 2006, 2007, 2008 etc. and then just a month or two before they go under the rating is dropped. What good was the A+ rating when agents were bragging on it to customers?
On the other hand you would not have written Settlers after NGL took them over because they were a B (initially unassigned) but now they are an A you will write them? The company is still under the same management, has the same investment philosophy, etc. Their financial problem was one that could not possibly have been foreseen by anyone other than Martin Frankle (he knew he was stealing the money)
Would you sell Mother Met now? She has an A rating but she failed the Federal reserve stress test.. Which do you choose to believe.
EL&C has been in business 75 years and has a B+ rating.. I have no problem with them. As an agent I have been through company failures and all of them had an A or better rating with the exception of one and that was a start up company that was totally mismanaged.
Even Best states that their B+ and B++ rating represents a company that has good financial strength.
Similar threads
