Non Rated Carrier?

May 20, 2016

  1. cap361
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    cap361 Expert

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    Does anyone here uses them? We have some competitors that are writing them and they got some cheap rates.
     
    cap361, May 20, 2016
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  2. indienoise
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    indienoise Guru

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    I do for nonstandard business. I think it would be a much harder sell if it were for preferred customers.
     
  3. insurance1822
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    you mean they don't have an A.M. Best Rating? Like what carriers?
     
  4. stex
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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.
     
    stex, May 21, 2016
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  5. cap361
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    cap361 Expert

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    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.
     
    cap361, May 21, 2016
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  6. FEX Quotes
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    They don't necessarily have to go under for an E&O policy to not respond. Any claim could be problematic.
     
  7. cap361
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    cap361 Expert

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    what do you mean Fex? Example?
     
    cap361, May 21, 2016
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  8. FEX Quotes
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    Insured has claim and learns they are inadequately insured.

    Auto: UM/UIM and other FPB can be a hotspot
    Home: RC vs ACV
    Commercial: Too many landmines to get into here.

    Agent gets blamed. Right or wrong, defense needs to be tendered.
     
  9. indienoise
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    indienoise Guru

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    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.
     
  10. stex
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    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.
     
    stex, May 22, 2016
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