ISO is a third party independent agency that evaluates the fire department, water department and communications systems. It rates the results on a national scale from one to ten (one being the best and highest). According to ISO, its Public Protection Classification Program (PPC) plays an important role in the underwriting process with insurance companies. Most U.S. insurers report that the PPC information is used in their decision-making process when deciding what business to cover, what coverages to offer or prices to charge for personal or commercial property insurance. With a communities Class 2 rating, many insurance providers give a discount on annual insurance premiums for residences and businesses. Residents and business owners should check with your insurance companies to see how this new classification affects you.