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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Admitted companies have access to a cowork facility in Rockville, Maryland and receive additional support that includes $50,000 in funding, software development support, mentorship and working in the local health tech ecosystem.
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).
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.
Admitted companies will have access to the cowork facility along with other support that includes up to $50,000 in funding, mentorship and access to the local health tech ecosystem.
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.
Further, the lower minimum capital requirements for admitted companies provides additional concern, since a majority of the surplus lines insolvencies impacted carriers with less than $5 million in surplus.
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.
The majority of insurance policies will be issued by various admitted companies with Travelers Group, with MTU as the exclusive product distributor.