What is an Admitted Insurer?

An admitted insurer is one that has received authorization from the state regulatory authority to conduct business within that state. This means that the insurer has met all licensing requirements and complies with state regulations, including financial solvency standards and consumer protection laws. Being admitted allows the insurer to offer policies that benefit from the state's guarantee fund, which provides some security to policyholders in the event of the insurer's insolvency.

An insurer that is not admitted, on the other hand, operates without state approval and may not offer the same level of consumer protection. Therefore, the distinction between admitted and non-admitted insurers is important for policyholders, as it reflects the legitimacy and oversight of the insurer's operations within the jurisdiction.