Insurer Financial Strength Ratings, Part 2
Insure.com offers these explanations of insurer ratings to make it more accessible to the homeowner. A rating of NR means Not Rated, or there is no opinion given on the financial security of the insurer. A rating of R stands for Regulatory Supervision, at which time the regulators have a say what obligations must be paid over other obligations. We will go over the ratings in ascending order. In this post, we look at ratings considered vulnerable by Standard & Poor’s.
A CC rating signifies Extremely Weak financial security, suggesting that some financial commitments will probably not be attended to.
A CCC rating means the insurer has Very Weak financial security and may only be able to meet financial commitments depending on the business environment.
A rating of B indicates Weak financial security characteristics. If business conditions are not favorable, its ability to fulfill financial obligations will be hampered.
A rating of BB means the insurer has Marginal security characteristics. In case of adverse business conditions, there may be decreased ability to meet financial commitments.