TSCM excerpt: Conseco capers: This is just too good to pass up. On June 15, A.M. Best, which
rates insurance companies, downgraded the ratings on Conseco's (CNC:NYSE -
news - boards) 14 life and health insurance subsidiaries (which represent around
30% of the company's insurance biz) to B++ (or very good) from A- (which is
considered excellent). From excellent to very good? Nothing to worry about, right?
Not according to the Long Term Care Insurance National Advisory Council, a private
consortium of insurance agents, which tells consumers under the "how-to-rank"
part of its Web site that the company's A.M. Best rating "must be A- or above.
Accept no B+ or lower ratings unless you have health conditions which prevent
coverage with a higher rated company." Conseco, however, has failed to spread the
word about the ratings change. Under "stability" in the "frequently asked questions"
section regarding long-term care on its own Web site, the company says: "The
Conseco subsidiaries selling long-term care coverage have been rated "A" by A.M.
Best Company, the third highest of 15 ratings assigned by Best." (Never mind that
it wasn't even "A"; it was A minus!) The company -- which thanked me for pointing
it out -- said the old rating was an "oversight" by the site's editors. And maybe it
was, but that doesn't explain why several long-term care insurance agents that my
sidekick Mark Martinez, myself and my sources checked with still said Conseco
was rated A-. And a few of those who did say it's rated lower still referred to it as "a
fine company" that has gone through financial trouble that is now behind them and
is nothing to worry about. Nothing to worry about?! The longer-term the insurance,
the more important the rating! ...
thestreet.com
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Interesting timing on the article.
Jack |
