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Question 4 of 7 in Insurance Company

How do I interpret a rating?


The rating is an evaluation by insurance analysts of the degree of financial strength of the insurance company. Companies with high ratings are more likely to withstand difficult financial times and be able to pay benefits to policyholders as promised in its policies. If a company has a low rating, it is more likely to experience difficulties paying its promised benefits. Still, most companies are able to pay the promised benefits.
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