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The risk you take with an insurance policy depends on two things: The type of policy you have and the relative strength or weakness of the insurance company. So here are the steps to follow ...

Step 1. Determine which broad category of policy you have. Generally speaking, there are three:

• Cash-value policy. These are the most affected by the failure of the insurer. They include fixed annuities and whole life, sometimes called universal life. Your funds go into the insurance company's own balance sheet, and if their balance sheet goes down, your savings can go down with it.

• Variable annuities or variable life. Your money does not become a part of the insurance company's portfolio. Instead, it goes into separate accounts. Like in a 401k, your money is actually invested in mutual funds. And like the 401k, you should check which funds you currently have, check their menu of choices and switch to the safest ones.

• Term insurance - life, health, auto, home, etc. Your risk is greatly reduced because you're paying strictly for the insurance. Your savings are not tied up.

Step 2. Become familiar with the rating scale below:

A = excellent
B = good
C = fair
D = weak
E = very weak
+ = the upper third of each grade range
- = the lower third of each grade range

Step 3. Find your insurer in our list of Weakest Health, Life and Annuity Insurers in the U.S. or in our list of Strongest Health, Life and Annuity Insurers in the U.S. For your convenience, they are listed in alphabetical order. Or you can just use the search function on your screen.

Step 4. Our lists do not include property and casualty insurers. Nor do they include very small insurers or those that are rated "fair" (C+, C and C-). So if you cannot find your insurer in one of the lists below:

• Go to www.TheStreet.com.

• On the home page menus in the upper right, you'll see an item called "PORTFOLIO & TOOLS." Pull down that menu and select "Insurers and HMOs Screener."

• This will take you to a new page with the insurer screener, and you'll see a box on the left-hand side to fill in the needed information.

• Under Company Type, select ...

• Life & Health - for life, health and annuity insurers

• Property & Casualty - for auto, home or business insurance

• HMOs - for Health Maintenance Organizations

• Then, under Insurer name, type in strictly the FIRST name of the insurer with no spaces.

• A list of insurers plus their ratings should appear to the right of the data entry box.

Step 5. When you have your insurance company's rating, follow these guidelines:

• If your insurer is rated B- or higher, it implies no further action is needed under normal circumstances.

• If your insurer is rated D+ or lower, it's a red flag. Unless you must have the coverage and your personal situation would disqualify you from an alternate policy, seriously consider canceling the policy and, if you still need the insurance, shifting to another company. In tax-protected plans, make sure your agent helps you make the transfer without tax consequences.

• If your insurer is rated C-, C or C+, it's a yellow flag. Monitor the rating periodically to make sure it has not been downgraded below C- (D+ or lower).

Important: No matter what kind of policy you have, seek to do business only with strong insurers. Reason: If your insurer fails and you have to switch to a new company, you may not be able to get a similar policy or, if your situation has changed, you may not qualify for the insurance.

Step 6. If you're shopping for a new insurance company, favor those with a rating of B+ or better. Refer to the Strongest Life & Health plus Property & Casualty Insurers in the U.S. Or ...

1. Return to Insurers and HMOs Screener
2. Under Company Type, select:
   • Life & Health - for life, health and annuity insurers
   • Property & Casualty - for auto, home and business insurance
   • HMOs - for Health Maintenance Organizations
3. Under Rating, select B
4. To the right of the rating, select "or higher"
5. On the list to the right, under "display," set the number of insurers to be listed to 100.
6. From the list displayed to the right, look for insurers with a rating of B+ or better. Most insurers are licensed to do business in many states. So you are not restricted to insurers that are domiciled in your state.