In this week's coursework we've talked about the nuances of the agency relationship in the insurance context. Specifically, when discussing the duties owed by a producer to its customers, we discussed the importance of the duty to place insurance with a solvent insurer. Case law has established that it is not the job of insurance agency to guarantee the solvency of the insurance carrier BUT courts have also held insurance agents liable where they've known or should have known of an insurance company's looming insolvency. How would you know about an insurance carrier's looming insolvency?

Use the internet to identify and research factors you might consider in determining whether an insurance company is financially unstable. The factor might relate to government involvement, market behavior, the handling of claims or leadership behavior. Explain how your factor might be a potential indicator of financial insolvency.