Admitted Insurance


Admitted Insurance
Insurance purchased from a company that is admitted (or licensed) in the state in which the policy was sold. Admitted insurance must also be sold by an agent who is licensed in that state.

By contrast, many states will allow non-admitted carriers to transact business in their state where there is a special need that cannot or will not be met by admitted carriers. Non-admitted carriers are usually referred to as "surplus" or "excess lines insurers". Non-admitted carriers are not regulated in that state and do not contribute to the State Guaranty Fund, which protects policyholders from the bankruptcy of its insurance carrier.

Insurance purchased from these carriers is therefore riskier than doing business with admitted carriers and brokers must inform consumers if their insurance has been placed with a non-admitted insurer. Also, the purchaser and/or the insurance broker must provide a statement that it made a good faith effort to obtain the insurance from admitted carriers before seeking out a non-admitted carrier.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Insurance fraud — Criminal law Part …   Wikipedia

  • Insurance — This article is about risk management. For Insurance (blackjack), see Blackjack. For Insurance run (baseball), see Insurance run. In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a… …   Wikipedia

  • insurance — /in shoor euhns, sherr /, n. 1. the act, system, or business of insuring property, life, one s person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a… …   Universalium

  • Admitted Company — An insurance company that is domiciled in one state but is admitted by another state to transact insurance business. Because insurance licenses are governed by the states, an insurance company must be licensed by each state where it intends to… …   Investment dictionary

  • Admitted Assets — Assets of an insurance company that are permitted by state law to be included in the company s financial statements. Although each state has discretion over its own insurance laws, there is a general consensus over which assets are suitable to… …   Investment dictionary

  • admitted assets — A technical term of the insurance business, meaning assets of art insurance company so approved by state regulatory agencies as to permit their being taken into account in setting forth the financial condition of the company …   Ballentine's law dictionary

  • admitted asset — noun : any asset of an insurer allowed by state regulations to be reckoned in determining the financial condition of an insurance company …   Useful english dictionary

  • admitted company — noun : an insurance company that having complied with the laws is authorized to transact business within a certain state or country …   Useful english dictionary

  • Chartered Insurance Institute — Coordinates: 51°35′41″N 0°01′17″E / 51.594761°N 0.021271°E / 51.594761; 0.021271 …   Wikipedia

  • Oklahoma Insurance Commissioner — Oklahoma This article is part of the series: Politics and government of Oklahoma …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.