Admitted Insurance Company:
An admitted insurance carrier is state-backed and has the following characteristics:
- The carrier must comply with regulations set by the state's Department of Insurance.
- If the carrier fails financially, the state will intervene to ensure necessary payments are made on claims.
Non-Admitted Insurance Company:
A non-admitted insurance carrier isn't state-approved and holds the following implications:
- The carrier may not comply with state insurance regulations.
- If the carrier becomes insolvent, there's no guarantee that claims will be paid, even during ongoing cases.
- Policyholders cannot appeal to the state insurance department in case of perceived improper case handling.