Also referred to as a surplus lines carrier, they choose not to be licensed directly by a particular state, although they are still approved to write insurance in that state.
The types of risks insured by non-admitted insurers are unique and sometimes difficult to rate. The advantage of a non-admitted carrier is they can be more flexible with their rates and policy terms. (Licensed insurers must have their rates and terms preapproved by the insurance department).
The disadvantage is, in case of insolvency of a non-admitted carrier, a policyholder is not eligible to participate in a state’s insolvency fund. An insolvency fund is a reserve maintained by the state to assist in the payment of claims in case of an insurer insolvency. Only policyholders insured through licensed insurers are eligible.
Our obligation to you is to provide the broadest policy available at an affordable cost. We will sometimes quote non-admitted carriers because their rates and terms are better. You always have the option of asking instead for us to use an admitted insurer, if one is available. Either way, unless otherwise noted on our quote, we try to use insurers with a Best’s rating of A (Excellent) or better.« Back to Glossary Index