Admitted vs Non-admitted refers to what?

Admitted vs Non-admitted refers to what?

• A. Whether or not an insurer is approved or authorized to write business in this state.
• B. Whether the insured has been admitted to hospital.
• C. Whether a policy is currently active.
• D. Whether a claim has been admitted for payment.

Answer: (A)

Admitted versus non-admitted refers to whether the insurer is licensed and authorized to write insurance in this state. An admitted insurer has a valid license, must use approved forms and rates, pays premium taxes, and participates in the state guaranty fund to protect policyholders if the company fails. A non-admitted insurer isn’t licensed to operate generally in the state and may sell coverage through surplus lines or in special situations, often with less state oversight and limited guaranty fund protection. The question is about the insurer’s licensing status to write business here, not about hospital admission, whether a policy is active, or whether a claim has been admitted.

Admitted versus non-admitted refers to whether the insurer is licensed and authorized to write insurance in this state. An admitted insurer has a valid license, must use approved forms and rates, pays premium taxes, and participates in the state guaranty fund to protect policyholders if the company fails. A non-admitted insurer isn’t licensed to operate generally in the state and may sell coverage through surplus lines or in special situations, often with less state oversight and limited guaranty fund protection. The question is about the insurer’s licensing status to write business here, not about hospital admission, whether a policy is active, or whether a claim has been admitted.