The A.M. Best Company: A.M. Best is perhaps the best known of all the insurance rating companies. It publishes over 50 different information products about insurance companies and the insurance industry. Here is an overview of what the A.M. Best rating system means.

The following ratings are considered “secure” ratings by A. M. BEST:

A++ and A+ (Superior): The company has demonstrated superior overall performance and has a very strong ability to meet its obligations to policyholders over a long period of time.

A and A- (Excellent): The company has demonstrated excellent overall performance and has a strong ability to meet its obligations to policyholders over a long period of time.

B++ and B+ (Very Good): The company has demonstrated very good overall performance and has a good ability to meet its obligations to policyholders over a long period of time.

The following ratings indicate that a company is “vulnerable” to financial difficulties in the future by A. M. BEST:

B and B- (Adequate): The company has an adequate overall performance and can meet its obligations to policyholders, but may be vulnerable to unfavorable changes in underwriting or economic conditions.

C++ and C+ (Fair): The company has demonstrated fair overall performance and can meet its current obligations to policyholders, but is vulnerable to unfavorable changes in underwriting or economic conditions.

C and C- (Marginal): The company has demonstrated marginal overall performance. It can meet its current obligations to policyholders, but it is very vulnerable to unfavorable changes in underwriting or economic conditions.

D (Very Vulnerable): The company has demonstrated poor overall performance. The company can meet its obligations to policyholders, but is extremely vulnerable to unfavorable changes in underwriting or economic conditions.

E (Under State Supervision): The company is under state insurance regulatory authority supervision, control or restraint, such as conservatorship or rehabilitation, but not including liquidation. This rating may be assigned if the company is under a cease and desist order issued by a state regulator other than from its state of domicile.

F (In Liquidation): The company has been placed under an order of liquidation by a court of law, or its owners have voluntarily agreed to liquidate. Companies that voluntarily liquidate or dissolve their charters are generally not insolvent.