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Research an insurance company before you buy a policy.

Experts say to research insurance companies before you buy. There are four independent rating services that track the financial health of US insurance companies. These services are Standard and Poor's (standardandpoors.com), AM Best (ambest.com), Weiss Ratings (weissratings.com), and Fitch Ratings (fitchratings.com). Each company has a comprehensive web site and rates most American insurance companies.

It isn't too common, but insurance companies can have troubles like any other business. If a company isn't financially stable, it can have an impact on their ability to pay a claim. Whether you are working with a life insurance company or a company that covers your personal insurance such as car insurance or health insurance, the stability of the company is key.

What happens if my insurance company goes bankrupt or becomes insolvent?: If your insurance company becomes insolvent, your company would then be taken over by the agency in your state that deals with insurance company insolvency. Your policy will still be active and will be assigned or sold to a solvent company, or terminated on a specific date. If your policy is being terminated, your agent will be notified and will have the task of finding a new policy.

There is usually not an issue with a policy being in force, or a claim being paid. but, If you don't have to go with a poorly insurance rated company, don't.

Check out the strength of your insurance company before you buy. Your insurance agent should be able to provide you with this information when he or she is quoting your policy. Use this when making a choice for your coverage.