C
Pre-Paid Legal Casualty Inc
AdaOK
Rating Date
June 2025
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Loss
Ratio
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Capital
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Premiums
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Major Rating Factors: Weak overall results on stability tests (2.0 on a scale of 0 to 10) including weak results on operational trends, weak risk diversification and weak risk adjusted capital in prior years. Fair reserve development (4.6) as reserves have generally been sufficient to cover claims. Fair profitability index (3.0) with operating gains in each of the last five years. Return on equity has been fair, averaging 40.2% over the past five years.
Other Rating Factors: Good liquidity (6.1) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting significant improvement over results in 2022.
Stability Factors: D - Limited diversification of general business, policy, and/or investment risk. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Other (100%)
Licensed in: AK, MA, MS, NJ, NV, OK, VA
Principal Investments: Investment grade bonds (7.0%), cash (3.5%), other (89.4%)
Ratios
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2-Year Reserve Development
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Investments in Affiliates
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Corporate Info
Group Affiliation
None
Investment Rating
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Company Address
One Pre-Paid Way
Ada, OK 74820
Phone Number
(800) 654-7757
NAIC Number
37869
Largest Affiliates
No affiliate information available.