The carriers we are appointed with

"Independent" only means something if you can see the list

An insurance agency is appointed by each company it is allowed to write business for. A captive agency holds one appointment; an independent agency holds several, and can place a policy with whichever company underwrites a particular person best. This page lists the companies Next Wave Options is appointed with, their financial strength ratings, and how to check both for yourself. No company paid to appear here.

Companies we are appointed with

Ratings are AM Best financial strength ratings as of the review date at the bottom of this page. Ratings change; before you buy, look the carrier up yourself using the links in the next section.

Appointments can be confirmed on the California Department of Insurance license lookup: search license #0G97165 and the record lists every company we are appointed with.

How to read an AM Best rating

AM Best is a rating agency that specialises in insurance companies. Its financial strength rating is an opinion of an insurer's ability to meet its ongoing obligations to policyholders, which for you means its ability to pay a death benefit or an annuity income decades from now. The scale runs from A++ and A+ ("Superior"), through A and A- ("Excellent") and B++ and B+ ("Good"), down to ratings AM Best classifies as vulnerable. A rating is not a guarantee, and it is not the only thing that matters, but a carrier's rating is the first thing we look at and the first thing we tell you.

You can search any insurer's current rating at AM Best's rating center. Two more sources are worth ten minutes before you buy from anyone: the NAIC's consumer information pages, which include complaint data by company, and the California Department of Insurance's company and agent information page.

What we look at before we quote a carrier

1. Financial strength. The AM Best rating and its outlook. We tell you the rating of every carrier in a comparison, and if a lower-rated carrier is in it, we tell you why it is there.
2. Underwriting fit. Carriers price the same person differently. One is kinder to controlled diabetes, another to a seasonal occupation, another to age 80 and over. This is most of what "independent" buys you.
3. Contract terms. For annuities: the surrender period and schedule, the free-withdrawal amount, and for indexed contracts the caps and participation rates and how often the carrier can change them. A high headline rate with a long surrender period is not a better contract.
4. Service record. How claims and service requests are handled, and the carrier's complaint history in the public sources above.

We do not publish a list of companies to avoid. Insurance regulation prohibits unsupported comparisons between carriers for good reason, and a blacklist would tell you less than the framework above. If you bring us a contract from a company we are not appointed with, we will evaluate it against the same four points and say what we think.

What a carrier's guarantee actually rests on

Every guarantee in a life insurance policy or an annuity contract is a promise by the issuing insurance company, backed by that company's reserves and claims-paying ability. Annuities and life insurance are not bank deposits and are not FDIC insured. California, like other states, maintains a guaranty association that provides limited protection to policyholders if a licensed insurer fails; the Department of Insurance's consumer pages describe how it works and its limits. Financial strength ratings exist so that you rarely need to find out.

Questions people ask about carriers

Reviewed by Roberto Morales, California Insurance License #0G97165. Ratings are AM Best financial strength ratings as of that date. Next Wave Options is licensed for life and annuity products only and does not provide investment, tax or legal advice.