A fire rating is the rated duration (1 hour, 2 hours, 3 hours, 4 hours) that an assembly resists the spread of fire under standardized ASTM E119 test conditions. Building codes require specific fire ratings for: occupancy separations between tenants, exit corridors, exit stairwells, shaft enclosures, structural elements based on construction type, and assemblies between dwelling units. Each rated assembly has a specific tested wall section (UL listing or similar) that must be built exactly as tested.
Fire-rated assemblies are easy to compromise. Common failures: penetrations through rated walls without firestop, doors that don't self-close, gaps around HVAC ducts not treated with fire/smoke dampers, and electrical boxes installed back-to-back through the wall. Above-ceiling inspection is where most fire rating failures surface. The standard remedy is firestop sealant or pillows applied per a tested UL system, then re-inspection.