What does an AM Best A:VII rating mean in the insurance requirements?
The AM Best rating organization rates domestic insurance companies on their ability to back their insurance policies with fair and prompt claim payment. The letter rating is a measure of management’s experience and stability. The Roman numeral is a rating of the company’s financial size and strength of reserves and surplus capital. The letter rating ranges from A++ (Superior) to F (in liquidation) and the Roman numeral rating goes from VII ($50 to $100 Million) to XV (Greater than $2 Billion). The A:VII means excellent strength with over $50 million reported capital to pay claims.
