How to Rank any LTC Insurance Carrier


1. Call your State Department of Insurance.

2. Ask for Consumer Assistance.

3. Request data on LTCi companies, then for each carrier you are interested in, ask for the company's "Annual Sales Figures for long term care insurance". Also get the total number of Complaints for both Facility Coverage and for Home Care Coverage. Then ask for their total "LTCi Complaints Ratio" or "LTCi Complaints per Million". Compare this for several companies to get a feel for consumer confidence.

4. Have the agent obtain in writing the company's current A.M. Best Rating. A- or above is the best. B+ or lower ratings can be risky. You may not want to purchase from companies with a B+ or lower rating unless you have health conditions which prevent coverage with a higher rated company.

5.  If your are really serious, you can visit the Department of Insurance in person and ask to see the "Rate Logs" to determine how many times, if any, a company has raised rates on any group of LTC poicyholders in your state.  Rate increases would be a red flag. 

6.  Public Library - Ask reference desk for insurance rating books - A.M. Best, Weiss Research, S&P, Moody's, etc.

The A.M. BEST COMPANY:

These ratings, and the companies to which they are assigned, are considered secure by A. M. BEST:

A++ or A+ = Superior

A or A- = Excellent

B++ or B+ = Very Good

These ratings, and the companies to which they are assigned, are considered vulnerable by A. M. BEST:

B or B- = Adequate

C++ or C+ = Fair

C or C- = Marginal

D = Very Vulnerable

E = Under State insurance Regulatory Supervision.

F = In Liquidation
.

STANDARD & POOR'S:

These ratings, and the companies to which they are assigned, are considered secure by Standard & Poor's:

AAA = Superior financial security.

AA = Excellent financial security.

A = Good financial security, but capacity to meet policyholder obligations is somewhat susceptible to adverse economic and underwriting conditions.

These ratings, and the companies to which they are assigned, are considered vulnerable by Standard & Poor's:

BBB = Adequate financial security.

BB = Financial security may be adequate.

B = Vulnerable financial security.

CCC = Extremely vulnerable financial security.

NR = Not Rated.

R = Regulatory action.

MOODY'S INVESTORS SERVICES:

These ratings, and the companies to which they are assigned, are considered strong by Moody's:

AAA = Exceptional financial security.

AA = Excellent financial security.

A = Good financial security, but there may be possible problems in the future.

BAA = Adequate financial security.

These ratings, and the companies to which they are assigned, are considered weak by Moody's:

BA = Questionable financial security.
B = Poor financial security.
CAA = Very poor financial security.
CA = Extremely poor financial security.
C = The lowest rated class of insurance company