Definition of insurance company, choosing an

consideration should be given to a company's capacity to underwrite a particular risk, as indicated by its financial standing, claims philosophy, price structure, agent representation, loss prevention and reduction services, and risk analysis expertise. Information can be gained in several ways:

1. Reputation-a prospective insured can fairly easily learn something about an insurance company through business and professional associates (lawyer, accountant, banker), through conversations with others in the same field, and by discussions with agents and brokers.
2. Financial capacity-larger businesses and public libraries often have up-to-date reference books, such as Best's Insurance Reports (available in Life-Health and Property-Casualty editions) giving detailed analyses of hundreds of companies.
3. State Insurance Department-information about specific insurance companies may be available from the insurance departments located in state capitals.