What Is Non Admitted Insurance?

What Non-Admitted Insurance Means. “Non-admitted” status means an insurance carrier has not been approved by the state's insurance department, resulting in the following consequences: The insurance company doesn't necessarily follow state insurance regulations.

What does it mean when an insurance company is non-admitted?

A non-admitted insurance company isn't approved by the state, which means: The insurance company does not necessarily comply with state insurance regulations. ... If policyholders think their case was handled improperly, they can't appeal to the state insurance department.

Is a non-admitted insurer bad?

Non-admitted insurers are not necessarily risky or unstable. They may be better equipped to handle large losses. Also, they may have more experience in high-risk environments than standard insurers. You should always check the financial stability of an insurer, whether admitted or not.