Chapter 7: General Reference
Insurance Rating Services
 

When faced with making major purchases, smart consumers comparison shop, ask questions and may even conduct research regarding the product. It should be that way with your insurance selection too. Factors to consider when shopping for insurance should include service, price, claims payment history and the company's financial condition.

To assist consumers in obtaining information regarding a company's financial standing, a number of organizations rate the financial condition of insurance companies. Most of these rating services now provide this information free of charge via their websites, which makes it easier than ever for consumers to do their homework. Information about some of these rating companies is provided.
Rating the raters
Since each rating service establishes its own set of rating standards and has a unique rating or "grading" system, it prevents easy comparisons of one agency's ratings of an insurer with another's. For instance, an A+ rating may be the highest rating with one service, while it is the fifth highest with another. When contacting a rating agency, ask for a written explanation of its rating standards and the grading system used.
Insurance Rating Services

A.M. Best
Ambest Rd.
Oldwick, NJ 08858
908-439-2200
www.ambest.com

Provides ratings for insurance companies. Flat charge is $4.95 for each company rating. Full written reports are available for $19.95 per report. Free rating information is available via the company's website noted above. Phone hours are 8:30 a.m.-4:30 p.m., weekdays.

Demotech, Inc.
2941 Donnylane Blvd.
Columbus, OH 43235
1-800-354-7207
www.demotech.com

Provides financial stability ratings for insurance companies. There is a small fee to the insurance company being rated; information is free to consumers. Information needed: insurance company name. Free rating information is available via the company's website noted above. Phone hours are 9:00 a.m.-5:00 p.m., weekdays.

Duff and Phelps Credit Rating Company
55 E. Monroe St., Suite 3500
Chicago, IL 60603
312-368-3198
www.dcrco.com

Provides ratings for 1-5 insurance companies over the phone at no charge. Information needed: insurance company name. There is a small fee to the insurance company being rated. Free rating information is available via the company's website noted above. Phone hours are 8:00 a.m.-5:00 p.m., weekdays.

Moody's Investors Services
99 Church St.
New York, NY 10007
212-553-0377
www.moodys.com

Provides ratings for 1-4 insurance companies per call at no charge. Information needed: insurance company name. Rating information was not yet available via the company's website at close of publishing. Phone hours are 8:00 a.m.-6:00 p.m., weekdays.

Standard and Poor's Corporation
25 Broadway New York, NY 10004
212-438-2400
www.standardpoor.com/ratings

Provides ratings for 1-5 insurance companies per call at no charge. Information needed: insurance company name. There is a small fee to the insurance company being rated. Free rating information is available via the company's website noted above. Phone hours are 8:00 a.m.-5:00 p.m., weekdays.

Weiss Research, Inc.
4176 Burns Rd., P.O. Box 109665
Palm Beach Gardens, FL 33410
1-800-289-9222
www.weissratings.com

Provides ratings for insurance companies. There is a $15 charge for a verbal rating (over the phone) for one company. Information needed: insurance company name and state of domicile. Rating information was not available via the company's website at the close of publishing. Phone hours are 8:30 a.m.-10:30 p.m., weekdays; 9:00 a.m.-5:00 p.m., weekends.