What are admitted vs. non-admitted insurance carriers?

Admitted: An insurance carrier that is “admitted” has been approved by a state’s insurance department. That means that the company must comply with all state regulations regarding insurance and in the event that the insurance company goes bankrupt, the state will step in to make payments on claims as necessary.

Non-Admitted: An insurance company that is “non-admitted” has not been approved by the state’s insurance department. That means the company does not necessarily comply with state insurance regulations and if the insurance company becomes insolvent, there is no guarantee that your claims will be paid. However, non-admitted insurance companies have much more pricing flexibility, as they don’t have to submit their rates to the individual states for review.