Abstract
There are three prominent companies entrusted with the responsibility of rating companies offering long-term care insurance. The article below reveals the various characteristics of long term care insurance ratings.
Long-term care insurance refers to the coverage, which is offered by companies for meeting the expenses for a long time period, which is usually not met by the normal medical expenses and nursing. This is usually meant for people who have been afflicted by chronic disorders. The policy provides a long-term coverage for expenses of nurses, eating, bathing, dressing and cleaning with assistance from nurses or attendants.
Long term care insurance ratings are done for companies, which offer insurance programs for policyholders on a long-term basis. There are many companies, which in turn rate these companies offering long term care insurance to assess the solvency of the organizations. The following firms do the best ratings.
(I) Moody's Investors Services
Weak ratings:
The following are regarded as weak ratings.
BA
B
CAA
CA
C
Strong ratings:
Moody's long-term care insurance ratings are dependable and the company considers the following ratings strong.
AAA
AA
A
BAA
In the above ratings, AAA is considered to be the best grade whereas the C grade is applied to companies with weak financial health.
(II) A.M Best:
If a company is rated as grades given below, the company is regarded as susceptible to financial instability in the near future.
B and B- : This grade is regarded as adequate
C++ and C+ is considered fair
BC and C- considered Marginal
D is Very Susceptible
E indicates that the company in question has been put under the supervision of the state.
F implies that the company in question is In Liquidation.
As per long term care insurance ratings of A.M Best:
B++ and B+ is considered good
A++ and A+ is regarded as superior
A and A- is taken as Excellent.
(III) Ratings by Standard & Poor's:
The following grades are given to the different companies as per ratings of Standard & Poor.
Vulnerable ratings of the company has the following grades:
BBB
BB
R
NR
CCC
B
The following are graded as “Secure” ratings:
AAA
AA
A
Depending on the ratings of the companies, premium charged by these companies are determined.