Ratings Services

MR. WATSON: Rating services. It is self-explanatory, but I will go over it with you.

MR. WATSON: You have companies like

• A.M. Best
• Standard & Poor
• Moody's
• Fitch

They rate the insolvency/solvency of the insurance companies, their ability to pay claims. They might be rated as Triple A (AAA), B plus, B minus, C minus, D, double D, etc. etc... This information is used by consumers to help them decide which company to buy from. The F.T.C. (Federal Trade Commission) does not rate companies and Lloyd’s of London does not rate insurance companies.

Once again, in case you didn't download these review notes at the beginning of the chapter, here they are again.