Admitted insurance carriers have been approved by a state’s insurance department, whereas the non-admitted insurance company has not been licensed or regulated by a state. In an admitted carrier situation, the insurance company must comply with all the state regulations regarding insurance. In the event that the carrier is insolvent, there is a guaranty fund that would respond in the event of claims and actually pay claims on behalf of those insolvent, admitted carriers. In the event that non-admitted carriers go insolvent, they are not supported by the state’s fund.
Watch this video “What is the difference between admitted and non-admitted insurance carriers?” for more details:
This is Question #55 of a 100 insurance video series that Ross & Yerger is producing to provide insurance consumers with quick, valuable answers to their everyday insurance questions.
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