When you’re shopping for the right insurance coverage for your business, it’s important to understand certain nuances of industry terminology so you know exactly what protections you’re getting. One term that can be easy to overlook is whether a policy is admitted or non-admitted. In this article, we’ll explain what each means.
Admitted vs. Non-Admitted Insurance Programs
Purchasing an admitted insurance program means you are obtaining coverage from a state-licensed provider. An insurance company must prove they are compliant with rigorous state insurance regulations, established by the National Association of Insurance Commissions (NAIC), to become licensed. These regulations govern all elements of an insurance program, from policy forms and capitalization requirements to rate approvals and claims handling.
In contrast, a non-admitted insurance program is unlicensed. These types of programs are geared more towards specialized insurance rather than standardized programs. Also commonly called “surplus lines” or “excess lines insurers,” non-admitted insurance carriers are not licensed by the state’s insurance agency or required to comply with the NAIC’s regulations, so there is much more flexibility in product offerings and coverage of special risks.
Benefits of Admitted Insurance Programs
There are several benefits of purchasing admitted insurance. As a policyholder, you:
- Don’t have to pay certain fees and taxes on admitted policies.
- Have the right to appeal the state insurance department if you believe your policy or claim was mishandled.
- Can receive claims payments from the state if your admitted insurance company fails to remain in regulatory compliance.
Falvey Shippers: Admitted & Excellent
Falvey Shippers is proud to be introducing a new admitted insurance product. You can trust that your policy offers the best and most reliable coverage, in compliance with strict state licensing regulations. Plus, Falvey Shippers has a credit rating of “A Excellent” by A.M. Best, reinforcing our reliability.
To learn more about Falvey’s insurance programs, contact us.
