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Unit 3 Nature of the Industry
Each state makes and enforces insurance laws. State insurance
departments supervise and regulate insurers in their respective
states. For example, states collect consumer complaints about insurers.
Information about insurers can typically be found on a state’s
insurance agency website. You will read more about state insurance
departments in Chapter 12.
Agency Ratings Scale
Moody’s Aaa =
Aa =
A =
Baa =
Ba =
B =
Caa =
Ca =
C =
Exceptional
Excellent
Good
Adequate
Questionable
Poor
Very poor
Extremely poor
Lowest
Standard & Poor’s AAA =
AA =
A =
BBB =
BB =
B =
CCC =
Superior
Excellent
Good
Adequate
Adequate but vulnerable
Vulnerable
Extremely vulnerable
A.M. Best A++, A+ =
A, A- =
B++, B+ =
B, B- =
C++, C+ =
C, C- =
D =
Superior
Excellent
Good
Fair
Marginal
Weak
Poor
Figure 10-1. Rating Scales