Admitted Insurance

Admitted Insurance

An insurance policy sold by an admitted company, which is an insurance company licensed to operate in one state even though its main office is in another state. Insurance licensing in the United States is conducted on a state-by-state basis; admitted insurance is, in effect, "foreign" insurance that one may buy. Both the insurance companies themselves and the agents they use must be licensed in each state in which they work.
References in periodicals archive ?
For companies that operate in multiple countries, it is crucial that their insurance coverage complies with the regulations of each country, particularly those that require admitted insurance.
With this licensure is an assurance that placements with non-admitted insurance companies follows the utilization of a "diligent search" for insurance coverage from the admitted insurance company marketplace.
Perhaps the most basic example is the definition of an "insurance agent" in statutes such as California Insurance Code section 31: "Insurance agent means a person authorized, by and on behalf of an insurer, to transact all classes of insurance other than life, disability, or health insurance, on behalf of an admitted insurance company.
Insurance agency, IAG (NYSE: IAG) has admitted insurance processing errors while the company worked out insurance claims for damaged homes in Christchurch.
Two competing interstate agreements, the Surplus Lines Insurance Multistate Compact backed by the brokers, carriers and the National Conference of Insurance Legislators; and the Non Admitted Insurance Multistate Agreement, backed by states and the National Association of Insurance Commissioners, are going to meld into one.
Supermarket Insurance Group underwrites and services policies on behalf of admitted insurance companies rated “Excellent” by A.
Admitted Insurance - Certain countries (for example Brazil, China, India, Malaysia) want to retain as much insurance revenue in-country as possible, irrespective of where the parent is from, and so do not allow foreign companies to insure those risks from abroad.
These are fronted by locally admitted insurance carriers.
Coverage such as workers compensation or auto liability requires state approval or use of an admitted insurance carrier.
Global companies need to make sure they are buying coverage that is not only appropriate for their needs, but that they are meeting regulatory guidelines, buying admitted insurance when necessary, and understanding how to handle that.
More states, and the National Association of Insurance Commissioners back the Non Admitted Insurance Multistate Agreement.
Nonadmitted insurance cannot be sold if admitted insurance exists that can provide comparable coverage, and it can only be sold through a surplus-lines broker since in this case it is the broker who is regulated instead of the insurance company.