Choosing an insurance company
To provide the desired benefits and to offset a risk is an important decision. Numerous points should be considered in selecting the company and should be based on what you are trying to accomplish.
A good rule of thumb for selecting an insurance company could be this:
A risk either to important or too big to be assumed should be transferred to a risk bearer; A risk bearer is an insurance company.
Select a company that is financially sound and has a track record of solid safety performance. There are numerous rating services which will provide overall ratings of insurance company; AM Best, Moody’s and Fitch Rating Service are well known and reliable.
State insurance department:
All insurance companies are regulated and licensed; Contact your state department of insurance to verify the company is licensed to do business and also ask if there are complaints against the company. If so, what type of complaints are they?
Demand and expect customer service. Your insurance company representative should answer your questions promptly and accurately. Ask if the service department is open on weekends; What hours is the service department open and is there access through the internet?
Are there unseen or unnoticed additional fees in doing business with the insurance company?; Inquire about costs and fees and especially about renewal history; All companies will provide you with this information.
Most insurance companies offer a wide range of options, riders and contracts; Make sure the policy meets your needs and goals and that you fully understand all aspects of the policy and how it will benefit you.