Admitted insurer means

Admitted insurer means

• A. Is licensed to do business in a given state
• B. Is not licensed and sells surplus lines
• C. Is a non-US insurer
• D. Is a government entity

Answer: (A)

Admitted means the insurer has been licensed by the state to operate and write insurance there. This status requires meeting regulatory standards, including financial solvency, filing and approval of rates and policy forms, and ongoing state oversight. It also means the insurer is part of the state guaranty fund, providing policyholder protection if the company fails. Non-admitted carriers aren’t licensed in the state and can only write certain risks through surplus lines channels, often with different protections.

Admitted means the insurer has been licensed by the state to operate and write insurance there. This status requires meeting regulatory standards, including financial solvency, filing and approval of rates and policy forms, and ongoing state oversight. It also means the insurer is part of the state guaranty fund, providing policyholder protection if the company fails. Non-admitted carriers aren’t licensed in the state and can only write certain risks through surplus lines channels, often with different protections.