“A Standard & Poor's Insurer Financial Strength Rating is a current opinion of the financial security characteristics of an insurance organization with respect to its ability to pay under its insurance policies and contracts in accordance with their terms. Health maintenance organizations and similar health plans are assigned Insurer Financial Strength Ratings with respect to their ability to pay claims in accordance with their terms."
The above mentioned policy does not work for any particular policy, contract, or address the comfortableness of a particular policy for certain purpose. Moreover, the opinion does not take into timeliness of payment, account deductibles, surrender or cancellation penalties, nor the likelihood of the use of a defense such as fraud to deny claims. The financial ratings do not take consider the potential that may exist for foreign exchange restrictions to prevent financial obligations from being met for the organizations with cross-border or multinational operations, including those conducted by subsidiaries or branch offices.
Insurer Financial Strength Rating depends on the information that are given by the organizations or by Standard & Poor's. There is no audit in connection with any rating and on occasion rely on unaudited financial information are functioned by Standard & Poor's. Ratings changes now and then for many reasons. Though there is importance of this policy, Insurer Financial Strength Rating does not refer to an organization's ability to meet non policy (i.e. debt) obligations. The fact is that , Insurer Financial Strength Ratings are not a recommendation to buy or discontinue any policy issued by an insurer. As rating changes, the guaranty of an insurer's financial strength or security also changes as time passes.
