The Company Quiz

How old was Alfred M. Best when he began to work full time in the insurance industry?

• 15
• 50
• 70
• 23

Answer explanation

From an early age, Alfred Best was a hard worker, committed to helping support his family. At 15, Alfred took a job with the Queen Insurance Company of America in New York City at $3 per week.

What year did Alfred Best incorporate the Alfred M. Best Company?

• 1899
• 1945
• 1776
• 1985

Answer explanation

In December 1899, Alfred M. Best launched the Alfred M. Best Company.

What was the name of the first publication that the company produced?

• Best’s Insurance Reports – P/C which became Best’s Review

• Best’s Settlement Options Manual
• Best’s Executive Data Service
• Best’s Intelligencer

What was the first catastrophe that gave AM Best much-needed publicity and highlighted the need for the company’s reporting on insurer financial strength?

• The Great Baltimore Fire of 1904
• The Cuban Missile Crisis of 1962
• The Hartford Circus Fire of 1944
• The MGM Grand Hotel Fire of 1980

Answer explanation

When large-scale catastrophes occur, systemic weaknesses become glaringly apparent. Alfred Best performed an essential service by reporting on the ability (or inability) of insurers to cover the losses from the Baltimore Fire of 1904.

When did AM Best issue its first credit ratings?

• 1950
• 1905
• 2000
• 1976

Answer explanation

AM Best was the first company to offer credit ratings for insurance companies, which allowed policyholders to make informed decisions about which companies to do business with. In 1905, the New York Department of Insurance asked Alfred Best to develop a list numerically indicating the reliability of certain unlicensed insurance concerns. These were the first published numeric credit ratings.

How did the company’s rating system differ from its competitors?

• It is an alphabetical rating system
• It is both qualitative and quantitative
• It is focused exclusively on the global insurance industry
• It is based on statutory filing data

In 1910, Alfred Best purchased a farm in Peru, Vermont, and used it for company retreats. What was the name of the farm?

• Best's Barnyard
• Garrett's Garage
• Hapgood's Homestead
• Arcady Farm

Answer explanation

Arcady Farm was a pleasant retreat where Alfred and his family could enjoy life away from the pace and pressures of the city. Company retreats at the farm mixed business with relaxation and provided the opportunity for personnel to interact in a less formal environment.

In what year did AM Best introduce a mainframe computer and create the first electronic statement file?

• 1899
• 1968
• 1930
• 2001

In the 1990s competition was increasing from other credit rating agencies like S&P, Moody's, and Weiss entering the insurance rating field. In response, what did AM Best do to enhance the visibility of Best’s Credit Ratings?

• All of the below

• Published credit rating announcements via BusinessWire
• Began disseminating Best’s Credit Ratings via the company website
• Expanded into nonUS markets and opened offices outside the US

Answer explanation

In the 1990s, when the larger credit rating agencies were expanding their coverage of insurance companies, AM Best responded by opening offices in London and Hong Kong, followed later by offices in Dubai, Mexico City, Singapore and Amsterdam. AM Best elevated the profile of its credit ratings by making them accessible at no charge via digital and online channels. Today, the company also disseminates its ratings via mobile technology and social media.

In 1994, AM Best initiated what forum for insurance leaders to gather and address key issues, major trends and developments in the insurance industry?

• Analytical Briefings
• AM Best Webinars
• College of Insurance Seminars
• AM Best’s Review & Preview Annual Conference