A.M. Best Rating
A.M. Best is the insurance industry’s most recognized and widely used credit rating agency, known for evaluating the financial strength and creditworthiness of insurance carriers. Established in 1899, A.M. Best has over a century of expertise in assessing an insurer’s ability to meet its ongoing policy and contractual obligations to policyholders.
What is an A.M. Best Rating?
An A.M. Best rating provides an independent opinion of an insurer's financial health and stability. The rating system ranges from A++ (Superior) to F (In Liquidation), and is intended to help consumers, agencies, and businesses gauge the risk and reliability of insurance providers.
Ratings Breakdown:
Secure Ratings:
A++ (Superior)
A+ (Superior)
A (Excellent)
A− (Excellent)
B++ (Good)
B+ (Good)
Vulnerable Ratings:
B (Fair)
B− (Fair)
C++ to C− (Marginal to Weak)
D (Poor)
E (Under Regulatory Supervision)
F (In Liquidation)
Note: Ratings are reviewed regularly and may change as new financial data becomes available or market conditions shift.
Why Isn’t Every Carrier Rated by A.M. Best?
Although most major insurance carriers choose to be rated by A.M. Best, participation is voluntary and fee-based. Some carriers opt out of being rated for various reasons, including:
The carrier is part of a Captive Insurance Program (a self-insurance model).
Insurance is provided through an Assigned Risk Pool for high-risk businesses.
Coverage is obtained from State Funds or State Departments of Labor & Industries, particularly in the five monopolistic states:
North Dakota
Ohio
Washington
Wyoming
(Puerto Rico also has a similar structure)
Why A.M. Best Ratings Matter in VIVE
In the VIVE compliance process, A.M. Best ratings are often used to validate the strength of a vendor’s insurance provider. Clients may require carriers to be rated B+ or higher to meet compliance standards. If a vendor submits a policy from an unrated or poorly rated carrier, additional documentation or clarification may be requested.
What to Do if a Carrier is Unrated
If an insurance provider does not have an A.M. Best rating, vendors should:
Confirm whether the policy is issued through a State Fund or Captive Program.
- Contact VIVE Support for assistance in determining compliance options.
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Need More Help?
For further assistance, contact VIVE's customer service:
Available 9:00 am - 6:00 pm Monday - Friday EST
- Online chat under the "Help" icon
- Email: support@getvived.com