You'd like to know about an insurer's financial strength before you buy one of its policies. The major independent research firms -- Standard & Poor's, Moody's Investor's Service, A.M. Best, and the like -- measure a company based on the depth of its reserves, the spread of its risks, profitability and investment income, the quality of management, and more. From there, the service assigns a grade.

Your agent should be willing to give you at least two ratings reports on any insurer you are considering. If he can't deliver, question what is being hidden here. While insurance company failures are rare, they are not unheard of, especially since the financial crisis that swept the country in 2008.