Insurance rating organizations can provide helpful information to prospective insurance buyers, but they vary in their independence from the process. With the exception of Weiss, there seems to be a tendency of the rating companies to delay their downgrades until just about everyone can see there is a problem. Case in point is Conseco, which carried a high ranking with all except Weiss for some time, even though there existed a large question as to whether the company could make it. Similarly, Reliance Group in PA carried an A- rating, even when it was clear to most observers that their prospects were substantially worse than most companies. This problem stems from a fear on the part of the major rating organizations that a downgrade in a company's rating could cause a "run on the bank" and create insolvency that would not have otherwise occurred. This is actually more a result of their failure to downgrade companies that deserve it over time.

Our caution, do not automatically assume that any type of an "A" rating is significant in guaranteeing the solvency prospects of a company. Check with other sources and your agent before you reach a conclusion.

A.M. Best & Company
www.ambest.com

Fitch Ratings
www.fitchratings.com

Moody's Investor Service
www.moodys.com

Standard & Poor's
www.standardpoors.com

Weiss Research
www.weissratings.com