What is an Admitted Carrier?
An admitted carrier is an insurance company that has received a license from the state department of insurance for the authority to write specific lines of insurance. Sometimes they are referred to as a standard carrier.
These companies are also bound by rate and form regulations and are strictly regulated. This protects policyholders from a variety of illegal and unethical practices, including fraud. Admitted carriers are also required to financially contribute to the state guarantee fund. This fund is used to pay for losses if an insurance carrier becomes insolvent or unable to pay the losses due to their policyholders
Understanding Admitted Carriers
An admitted insurance carrier is backed by a specific state. An admitted carrier can be admitted in one state but not another. To be an admitted carrier, an insurance company must comply with all of the regulations set by the state that has admitted them.
Working with admitted carriers provides added benefits to consumers. When purchasing policies from admitted carriers, consumers often experience the omission of certain fees and taxes. Consumers also have the right to appeal to the state if policies have been handled improperly. This sets admitted carriers apart from non-admitted insurance carriers.
There are several key differences between the admitted and non-admitted insurance markets–but which is safer? We’ll take you through the pros and cons of each. Continue Reading
Welcome to Surplus Lines insurance 101: an overview of the players in the surplus lines insurance industry and their roles and responsibilities. Continue Reading
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