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All Your Personal Insurance Company Needs |
Guide When Shopping for Insurance
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Find a reliable agent: If you wish to buy insurance from an agent, look for a licensed agent (insurance producer) who is reliable and helpful in answering any questions you may have. Ask your family or friends for recommendations.
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Shop carefully: Insurance is expensive. Comparison-shopping is worth the time it takes. Obtain more than one estimate or quote. Remember, if it sounds too good to be true, it probably is.
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Understand what you are buying: Ask for a detailed explanation in layman's terms. Don't accept calculations or examples you don't understand.
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Never permit high-pressure tactics: Immediately report harassment by agents or company representatives to the Division of Insurance.
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Do not be misled by advertising: Only you can decide if a policy is the right one for you.
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Fill out your application completely and accurately: It is important to give correct and complete answers when applying for insurance. If you omit or misrepresent information, the company can void the contract.
Insurer Rating Companies
There are firms that provide financial ratings for insurance companies. The firms are A.M. Best Company, Standard and Poor's, Moody's Investors Service, Duff and Phelps Credit Rating Company, and Weiss Research.
Here are some of the differences between the companies:
A.M. Best has been providing ratings on virtually all life and health insurance companies for the longest period of time. A text titled "Best's Reports" can be found at most major libraries.
Each organization employs its own technique for determining the rating of an insurer. Areas considered vary and include leverage, management stability, recent performance and financial situation. External factors such as competition, diversification and market presence can also be considered. Each organization provides a description of its analysis and defines its rating scores.
Standard and Poor's provide claims paying ability ratings for those insurers who request and pay for a rating. Standard and Poor's also provides qualified solvency ratings for other insurers.
Moody's provides ratings for only those insurers that request a rating. Therefore, ratings from this service are not available for all insurance companies.
Duff and Phelps, like Moody's, provides ratings for those insurers who request a rating and, therefore, ratings from this service are not available for all insurance companies.
Weiss Research provides safety ratings on more than 1,700 insurance companies.
Watch list identifiers follow the ratings if the company is on the rating service's watch list. The identifier indicates a possible upgrade (+), downgrade (-), or unknown change.
Contacting The Rating Companies
