A.M. Best Company's, Inc.

An Explanation of A.M. Best's Ratings


Secure Ratings

A++ and A+ (Superior)

     Assigned to companies which, in our opinion, have demonstrated superior overall performance when compared to the standards established by the A.M. Best Company. A++ and A+ companies have a very strong ability to meet their obligations to policyholders over a long period of time.

A and A- (Excellent)

     Assigned to companies which, in our opinion, have demonstrated excellent overall performance when compared to the standards established by the A.M. Best Company. A and A- companies have a strong ability to meet their obligations to policyholders over a long period of time.

B++ and B+ (Very Good)

     Assigned to companies which, in our opinion, have demonstrated very good overall performance when compared to the standards established by the A.M. Best Company. B++ and B+ companies have a good ability to meet their obligations to policyholders over a long period of time.

Vulnerable Ratings

B and B- (Fair)

     Assigned to companies which, in our opinion, have demonstrated adequate overall performance when compared to the standards established by the A.M. Best Company. B and B- companies generally have an adequate ability to meet their obligations to policyholders, but their financial strength may be vulnerable to unfavorable changes in underwriting or economic conditions.

C++ and C+ (Marginal)

     Assigned to companies which, in our opinion, have demonstrated fair overall performance when compared to the standards established by the A.M. Best Company. C++ and C+ companies generally have a current ability to meet their obligations to policyholders, but their financial strength is vulnerable to unfavorable changes in underwriting or economic conditions.

C and C- (Weak)

     Assigned to companies which, in our opinion, have demonstrated marginal overall performance when compared to the standards established by the A.M. Best Company. C and C- companies have a current ability to meet their obligations to policyholders, but their financial strength is very vulnerable to unfavorable changes in underwriting or economic conditions.

D (Poor)

     Assigned to companies which, in our opinion, have demonstrated poor overall performance when compared to the standards established by the A.M. Best Company. D companies have a current ability to meet their obligations to policyholders, but their financial strength is extremely vulnerable to unfavorable changes in underwriting or economic conditions.

E (Under State Supervision)

     Assigned to companies which are placed by a state insurance regulatory authority under any form of supervision, control or restraint, such as conservatorship or rehabilitation, but does not include liquidation. May be assigned to a company under a cease and desist order issued by a regulator from a state other than its state of domicile.

F (In Liquidation)

     Assigned to companies which have been placed under an order of liquidation by a court of law or whose owners have voluntarily agreed to liquidate. Note: Companies that voluntarily liquidate or dissolve their charters are generally not insolvent.

S (Rating Suspended)

     Assigned to previously rated companies which have experienced sudden and significant events affecting their financial position and/or operating performance whose impact cannot be evaluated due to a lack of timely or adequate information. This category replaces the former category NA-11.v

     Rating Modifiers are added to Best's Ratings to identify companies whose assigned ratings are based on an affiliation with other insurers (g, p, r); or the rating may be subject to change based on current exposures (q, u).
     g............Group Rating
     p............Pooled Rating
     r............Reinsured Rating
     q............Qualified Rating
     u............Under Review
     x............Revised Rating

     For more information about Best's ratings and A.M.Best, visit them at http://www.ambest.com

 
Wm.Scott Carter Insurance Agency #0703360

1820 W Carson St. Ste 221 | Torrance, CA 90501
Phone 310-732-0023
Fax 866-234-0026
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