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 Posted: Mon Jun 14, 2010 12:08 pm Post subject: Admitted vs. non-admitted insurance companies |
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I've come across the terms admitted & non-admitted insurers. Can you tell the difference between the two?
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CarsonD
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| Posted: Tue Jun 15, 2010 12:14 am Post subject: |
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| There are many differences but the big one is that an Admitted company has abided by the laws governing insurance companies in that state. As such, the state guarantees against insolvency. A non admitted carrier is not guaranteed. If they declare bankruptcy or simply don't have the funds to pay claims, then the claimant is SOL. Typically a non-admitted carrier is going to be writing more risky business such as Excess and Surplus lines. |
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tcope
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| Posted: Tue Jun 15, 2010 9:40 am Post subject: |
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| Quote: | | If they declare bankruptcy or simply don't have the funds to pay claims, then the claimant is SOL. |
That's perhaps the most important reason why we should consider the financial position of an insurer before signing up with them. |
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steven
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| Posted: Thu Jun 17, 2010 6:41 am Post subject: |
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Yes, you may procure non-admitted insurance from surplus lines brokers. These brokers have the state license.
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bigmouth7
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| Posted: Thu Jun 17, 2010 5:18 pm Post subject: |
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Also, non admitted carriers have more ability to vary their coverage. You have to be very careful to read all endorsements, exclusions and exceptions to exclusions to be certain you know what type of coverage you are getting. No assumptions can be made.
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InsuranceDude
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| Posted: Fri Jun 18, 2010 7:23 am Post subject: |
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If your risks are difficult or complicated, then you may need non admitted insurance. This is often suggested, as a lot of conventional policies don't offer adequate coverage. Policies are generally tailored to meet the insured's specific needs.
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sil
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| Posted: Fri Jun 18, 2010 4:35 pm Post subject: |
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Very True. Non Admitted carriers play a very big and important role in commercial lines. You just have to really inderstand the policy and how that fits with the clients needs.
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InsuranceDude
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| Posted: Sat Jun 19, 2010 11:32 am Post subject: |
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Non-admitted companies may cover applicants who hold more loss potential than the usual kind. This happens as such companies are not required to share their rates with the DI. Their charges are based on the risk that they get exposed to.
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Juanita
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| Posted: Sat Jun 19, 2010 5:27 pm Post subject: insurance |
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| MMmm......very clear explanation, between Admitted and Non-Admitted. I guess it's just me, but,......if Non-Admitted Insurance is so risky to have, then why would someone get that kind of Insurance? not trying to be ignorant..just doesn't make any sense to me. i would want ot have a 'stable' Insurance company behind me. |
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sdchargersfan
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| Posted: Sat Jun 19, 2010 5:45 pm Post subject: |
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Not all risks can be insured by an admitted carrier. Some companies or individuals need coverage that is not offered or available by admitted carriers, Think complex risks. ie: Nightclubs or Bars (Due to extreme liability exposures) or High Risk Homeowners Insurance (due to location or claim history). Just a couple examples.
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InsuranceDude
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| Posted: Sun Jun 20, 2010 4:01 pm Post subject: insurance |
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| Ok..I understand your meaning. That sounds logical. |
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sdchargersfan
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