Legal Definitions - A.M. Best Company

A.M. Best Company is a service that analyzes and advises on investments. They rate the financial strength of businesses on a scale from A++ (strongest) to D (weakest). If a company is under state supervision, they receive a grade of E, and if they are in liquidation, they receive an F.

For example, if a company receives a rating of A+, it means that they have a strong financial standing and are a good investment option. On the other hand, if a company receives a rating of C-, it means that they have a weak financial standing and may not be a good investment option.

If a company receives a rating of E, it means that they are being closely monitored by the state and may be at risk of financial instability. If a company receives a rating of F, it means that they are in the process of liquidation and are not a good investment option.

These ratings help investors make informed decisions about where to invest their money and which companies to avoid.