Non-admitted Insurer

The term “non-admitted insurer” may refer to an insurance company that is not licensed or admitted to do business in the state in which the policyholder is located. Non-admitted insurers are not required to obtain a license from the state, and are not subject to the same regulations and standards as admitted insurers. Non-admitted insurers may provide coverage for risks not covered by admitted insurers, such as unusual or difficult risks.

Non-admitted insurers often operate in the surplus lines market, which is the market of insurers that operate outside the state’s standard insurance regulatory framework. In the United States, non-admitted insurers are subject to state-specific surplus lines laws and regulations. These laws and regulations include requirements for surplus lines brokers or agents to obtain prior approval of a policy’s terms and conditions from the state insurance department, and to pay a special tax on the premiums of policies placed with non-admitted insurers.

In some cases, a non-admitted insurer may be allowed to operate in the admitted market, but may be subject to additional regulations and restrictions. For example, a non-admitted insurer may be required to obtain a license from the state in order to do business in the admitted market.

Non-admitted insurers may offer a variety of coverage, such as general liability, workers compensation, professional liability, and even specialty lines. As with admitted insurers, the coverage offered by non-admitted insurers may vary from state to state.

In summary, Non-admitted Insurer is an insurance company that is not licensed or admitted in the state where coverage is purchased. Non-admitted insurers are not subject to the same regulations and standards as admitted insurers, and may provide coverage for unusual or difficult risks that admitted insurers may not cover. Non-admitted insurers often operate in the surplus lines market, which is the market of insurers that operate outside the state’s standard insurance regulatory framework.