Admitted Company

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Admitted Company

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 companies are, in effect, "foreign" corporations that have received permission to conduct business in-state. Both the companies themselves and the agents they use must be licensed in each state in which they work.
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Direct premium volume was constrained by sluggish growth in industry sectors that affected exposure bases and by increasing competitive pressure, including admitted companies competing for surplus lines business, according to the report.
The amendments will also impact non- admitted companies wishing to conduct insurance business in Oman.
Change in the capital structure on cost rate of capital and stock of admitted companies in the exchange.
Giving emergency evidence to a committee of MPs, local government minister John Healey admitted companies should not have suddenly been landed with shock tax bills backdated three years.
Mr John Carlisle, spokesman for the Tobacco Manufacturers' Association, denied there had ever been a secret deal not to release the list of additives but admitted companies are reluctant to publish details of additives in particular brands for commercial reasons.
There is absolutely no reason why they should not, and it would put those offshores on the same kind of regulatory footing as admitted companies.
If a major cat occurs and the admitted companies need to raise capital, they will have a much larger problem by having written the surplus lines marginal business, which historically has a longer tail and will need more attention when the company can least afford to increase reserves.
Other aspects of the law--for example, sinkhole coverage--applicable to admitted companies were sought to be applied to the surplus lines industry and the failure to apply those standards in coverages prospectively and retroactively was used to claim damages from the carriers for provisions that were never applicable in the past.
The elimination of the costs and problems of fronting, a role that fewer admitted companies are willing to accept, gives the group captive more flexibility in determining its coverage and policy form, including unbundled services as part of the agreement.
M Best's annual studies have validated that the surplus lines market maintains financial performance and solvency rates that are at least on par with admitted companies.
Accounting for the largest portion of impairments among surplus lines and admitted companies were the related categories of deficient loss reserves/inadequate pricing and rapid growth (see Exhibits 31a and 31b).
The majority of insurance policies will be issued by various admitted companies with Travelers Group, with MTU as the exclusive product distributor.