Sentences with phrase «to pay future claims»
The uncertain cost of paying future claims as well as low interest rates since the 2008 recession led to the mass exodus from the market.
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Premiums are paid to a company and typically used to pay expenses and establish reserves, which are used to pay future claims benefits as they come due.
She noted that quality and financial strength — an important indicator of the company's ability to pay future claims — are even more important.
«The charges GE is taking and the charges Genworth took in 2014 and 2016 illustrate the severity of the issues facing LTC insurers and the need for appropriate and timely premium rate increases or benefit modifications to ensure the adequacy of cash flows and reserves to pay future claims,» Groh said.
«The regulatory objective is to use premiums to build capital in the insurer to pay future claims,» she said, rather than putting premium «into the administrator, outside the reach of claimants and insurers.»
Ellen Melchionni, president of the New York Insurance Association, which represents property and casualty insurers, argued that insurance companies need to maintain an surplus to pay future claims — and that allowing an insurer to operate in the red is «incredibly risky.»
This is done to ensure that there are sufficient reserves to pay future claims.
Financial strength ratings from A.M. Best, which indicate a company's ability to pay future claims, worth up to 100 points.
Similar to consumer credit bureaus, there are several insurance rating agencies (A.M. Best, Moody's, Fitch Ratings, S&P's) that provide insights into an insurance company's financial stability and ability to pay future claims.
You should also look at their financial strength from multiple rating agencies to determine their ability to pay future claims.
Financial strength ratings from A.M. Best, which indicate a company's ability to pay future claims, worth up to 100 points.
Regulators approve increases to ensure that insurers can pay future claims.
A low rating could mean a company is unlikely to pay future claims and might even be going under.
This is done to ensure that there are sufficient reserves to pay future claims.