Q) How do I know that the insurance company I have my auto insurance with is financially stable?
A) One way to check on the financial health of your insurance company is to visit its website and check the "A. M. Best" rating. "A. M. Best Company" is a full-service credit-rating organization dedicated to serving the financial-services industries, including the banking and insurance sectors. Policyholders and depositors refer to Best's ratings and analysis as a means of assessing the financial strength and creditworthiness of risk-bearing entities and investment vehicles.
Also, in Ontario, insurance companies must meet certain financial criteria. The Financial Services Commission of Ontario (FSCO) regulates insurance companies. FSCO's mandate is: "To provide regulatory services that protect the public interest and enhance public confidence in the regulated sectors."
To find out more about FSCO, visit the organization's website.
Have a question you'd like answered? Please send us an email at email@example.com.
Check back every month for new Quote Unquote questions and answers about insurance from readers just like you.