Admitted insurance refers to coverage provided by insurance carriers that are licensed and regulated by the state insurance agency where they operate. These carriers must adhere to strict regulations and standards set by the National Association of Insurance Commissioners (NAIC) and the respective state insurance agencies.
Key Points:
- Admitted carriers follow all state regulations concerning capitalization requirements, policy forms, rate approvals, claims handling, and more.
- State authorities intervene to ensure that claims are paid properly if admitted carriers fail to follow the established regulations.
- Admitted insurance policyholders are often exempt from certain fees and taxes associated with purchasing policies from a non-admitted carrier.
- Policyholders with admitted insurance have the right to appeal to the state insurance department if they feel that their policy has been mishandled.
Opting for admitted insurance offers policyholders additional layers of protection, such as regulatory oversight and access to appeals processes, that may not be available with non-admitted insurance carriers.