Non-Admitted Insurer Terminology

What is Non-Admitted Insurer?

A non-admitted insurance is organization that is not permitted or licensed to do business in a particular state. While these carriers sell policies that aren't backed by your state, most states will regulated these non-admitted insurer.

An non-admitted insurance company isn't required to be approved by the state, so:

• The insurer may not be in compliance with state regulations.
• Even if the case is active during the time of bankruptcy or financial failure, it is not guaranteed that claims will be paid if the insurer becomes insolvent.
• It is not possible for policyholders to appeal to the state Department of Insurance if they believe their case has been handled improperly.