How can I assess the financial strength of an insurance company?
There are five independent agencies—A. M. Best, Fitch, Moody’s, Standard & Poor’s, and Weiss—that rate the financial strength of insurance companies. Each has its own standards and rating scale, using a system of letter grades with pluses and minuses, so a grade at one agency may mean something different at another agency. Examine the rating scales at each of these companies in order to make a fair comparison. Check how an insurer is ranked by at least two agencies. All of this information is available on the agencies’ websites and is free, although you may have to register. You can also find this information at your local library.
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