Isn a larger carrier more secure than a small, regional carrier?
There are a number of qualities you should look for in assessing the quality and most importantly security of your insurance carrier. Bigger does not always mean better or more secure in the world of insurance. For example, many large companies with solid AM Best ratings choose to do business in various states on a non-admitted basis. Non-admitted companies are not required to seek approval of their rates or coverage forms from the Department of Insurance. The underwriting, claims and financial sections of the Department of Insurance do not routinely audit non-admitted companies. Finally, should a non-admitted company fail or go out of business their policies are not guaranteed by the various state insurance guarantee funds. On the other hand, admitted companies are required to have all rates and forms approved by the Department of Insurance, are routinely audited by various sections of the state insurance departments and their policies are backed by the state insurance guarantee funds
Related Questions
- Why are the capital gains for the Wells Fargo Advantage Precious Metals Fund and Wells Fargo Advantage Small Cap Growth Fund larger (as a percentage of the Funds’ NAV) than the distributions for other funds?
- What makes you believe that WFI (a small Calgary company) can compete with much larger, financially secure and established competitors?
- Isn a larger carrier more secure than a small, regional carrier?
