How to Select an Insurance Company

As with any major purchase, it is a good idea to shop around to ensure you are
getting the most for your money. When selecting an insurance company, it is
wise to check on a company’s rating. Several organizations publish insurance
company ratings, available in your local library and on the Web. These organizations include: A.M. Best Company, Standard & Poor’s, Weiss Ratings Inc., Moody’s Investors Service and Duff & Phelps. Companies are rated on a number of elements, such as financial data (including assets and liabilities), management operations and the company’s history.

Before purchasing insurance, it is important to verify whether a company is an authorized insurer in Florida. In most circumstances, benefits would be guaranteed through the Florida Insurance Guaranty Association (FIGA) and the Florida Life and Health Insurance Guaranty Association (FLAHIGA). If you buy from an unauthorized company, you will not be protected by the many Florida laws and rules that regulate the way a company does business.

• FIGA pays the claims of property and casualty authorized insurers if the companies become insolvent and cannot pay.

• FLAHIGA pays the claims of life and health authorized insurers if the companies become insolvent and cannot pay. Call the DFS service office in your area or the Consumer Helpline toll-free at 1-800-342-2762 for more information.