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 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

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

InsCipher is an insurtech company providing software and services that are revolutionizing inefficient insurance processes. Save your agency time and money by automating surplus lines compliance, filing, and reporting. Want to learn more? Request a free demo today

InsCipher - Surplus Lines Solutions

Surplus Lines Tax Filing, Simplified by InsCipher.