Non Rated Carrier?

cap361

Expert
40
Does anyone here uses them? We have some competitors that are writing them and they got some cheap rates.
 
I do for nonstandard business. I think it would be a much harder sell if it were for preferred customers.

Be careful using those carriers, your own E&O policy will not cover you if they go under and you get sued by the insured.
 
These companies are backed by reinsurance companies. I probably won't carry them but want some facts to explain to clients that I lose on why it's not worth the cheaper rates.
 
you mean they don't have an A.M. Best Rating? Like what carriers?

Like accc or assurance america

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Be careful using those carriers, your own E&O policy will not cover you if they go under and you get sued by the insured.

The sort of customer you place with these carriers is not the type who has much in the way of assets who would go to court for them. Even in the case of insolvency, Their 15 year old car would barely go over your retention anyway. May as well pay that out of pocket and save court costs. I realize there are a million loopholes your e&o could deny paying a claim anyway, but I've been told by big I that my e&o still covers insolvency by any of the NR carriers I represent, but that it might not for a carrier like UPC. Which isn't an issue for me.
 
Like accc or assurance america

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The sort of customer you place with these carriers is not the type who has much in the way of assets who would go to court for them. Even in the case of insolvency, Their 15 year old car would barely go over your retention anyway. May as well pay that out of pocket and save court costs. I realize there are a million loopholes your e&o could deny paying a claim anyway, but I've been told by big I that my e&o still covers insolvency by any of the NR carriers I represent, but that it might not for a carrier like UPC. Which isn't an issue for me.

Told by big I? You got your E&O from fireman's fund or w/e other carriers they have a partnership with? Most policies, including fireman's, I've seen exclude coverage when the claim is due to carrier insolvency. The policy then makes some exceptions - being rated B+ by AM best, eligible for state garranty fund or in a residual market. So as far as I can tell, most if not all non rated and RRGs are excluded.
 
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