Non-Admitted Carrier

What is a Non-admitted Carrier?

An non-admitted carrier is not required to be licensed by the state, but is allowed to do business in that state. Sometimes, non-admitted carriers are also referred to as E&S or unlicensed carriers. However, E&S carriers are financially stable companies that are regulated in other ways. 

Non-admitted carriers are not bound by most of the rate and form regulations imposed on standard market companies. This allows them the flexibility to change the coverage offered and the rate charged. Non-admitted companies can do this without time constraints and financial costs associated with the filing process. This is good for both the company and the policyholder. 

Understanding Non-admitted Carriers

Unlike an admitted carrier, non-admitted carriers are not backed by the state. They are not required to sell policies that adhere to the same standards as admitted carriers. However, non-admitted carriers are often still regulated by states they do business in.

Due to these less rigid standards, non-admitted carriers have more flexibility when designing coverage, selling policies, and writing risks. Companies that are struggling to find coverage in the admitted market often have more success in the non-admitted market.

Related Terms

Admitted Carrier

Agent

Alien Insurer

Broker

Domestic Insurer

Foreign Insurer

Related Articles

Comparing the Safety of the Admitted vs. Non-Admitted Insurance Markets

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.

What Is The Difference Between an Admitted Carrier and a Non-Admitted Carrier?

Admitted and Non-admitted carriers have some similarities. They are both insurance companies. They are both allowed to do business in a specific state. But it’s important to understand their key differences. Continue Reading.

Players in the Surplus Lines Insurance Industry

Welcome to Surplus Lines insurance 101: an overview of the players in the surplus lines insurance industry and their roles and responsibilities. Continue Reading.

Understanding Guaranty Fund Disclosures

All 50 states require some version of a Guaranty Fund Disclosure. Here’s what you need to know to navigate compliance for each state. Continue Reading.

Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest