Car Auto Insurance Coverage, Quotes and Tips

Independent organizations such as A.M. Best, Standard & Poor’s, Moody’s Investors Service, and others issue financial ratings. These rating organizations do not rate the quality of the company’s policies, practices, agents, or service. You ought to consider checking with at least two organizations to appraise a company’s strength. If you want to check on an insurance company’s financial stability, you can check the reference section of your public library for published ratings, call the OCI, or check with your insurance agent.

All states have a safety net to protect insurance consumers from financial loss in the rare case that a company becomes bankrupt. This safety net is called a “guaranty fund.” The guaranty funds are established by state law and are composed of certified companies in the
state. They pay the claims of policyholders and other claimants of an insolvent company. The money to pay the claims against the insurance company comes from assessments made against all of the insurance companies that are members of the guaranty fund.

In Wisconsin, this fund is named the Insurance Security Fund (Fund). The Fund is formed by state law and is funded by assessments of insurers qualified to do business in Wisconsin. In general, the Fund protects residents for most claims of licensed insurers in liquidation. The Fund
should not be relied upon to eliminate all risks of loss to insureds owing to insurer insolvency. A number of types of policies might not be fully covered and major delays could occur in settling obligations in cases of insolvency.