C-II.A · Casualty Basics
What an insurer rating tells you
An insurer's promise is only as good as its ability to pay. Independent rating organizations, such as AM Best, Fitch, Moody's and Standard and Poor's (S&P), study insurers' finances and publish ratings.
A rating is an opinion of the insurer's financial strength and its ability to meet its obligations.
It is not a promise that any particular claim will be paid. That still depends on the policy terms and the facts of the loss.
It is not approval by the Department of Insurance, and it says nothing about price.
Each agency uses its own scale. AM Best's top grade is A++, and S&P's top insurer financial strength grade is AAA. Because the scales are separate, the symbols cannot be compared letter by letter across agencies.
Remember
· A rating = an opinion of financial strength, not a guarantee that a claim is paid.
· Each agency has its own scale: A++ is AM Best's top, AAA is S&P's top.
CA
California Insurance Exam Prep
Bilingual practice for the California insurance license exams.
California Insurance Exam Prep is an independent study aid published by ORIGINAL HEART INC. It is not affiliated with, endorsed by, or connected to the California Department of Insurance (CDI) or PSI Services. All practice questions are original and written from the public CDI examination objectives and California law. They are not actual exam questions. Using this app does not guarantee that you will pass the licensing exam. Laws and exam content change; always check the current CDI Candidate Information Bulletin.
© 2026 ORIGINAL HEART INC
Exam prep classes
Life and real estate license exam prep with experienced instructors.
Learn more ›