What Is Admitted vs Non-Admitted Insurance?

Admitted means the insurer is licensed to do business in that state. The same company can be admitted in one state and not in another. The carrier on the policy is still the risk-bearing insurer either way.^1,2

A nonadmitted insurer is not licensed in a given state and can still be the carrier. Surplus-line coverage is placed with those insurers when an admitted insurer licensed to sell that coverage in the state is not available. The lawful route is specific to the risk's jurisdiction.¹

In California, a surplus-line insurer is not licensed by the state, is not under the solvency rules that apply to licensed insurers, and does not participate in California guarantee funds. In Wisconsin, a surplus-line agent may sell a nondomestic insurer with no Wisconsin certificate of authority.^3,5

Admission is a state authority fact, not a substitute for checking the named legal entity. In California, LASLI and eligible-carrier categories are distinct, and CDI does not preapprove eligible carriers.^4,2

For the named legal entity and the risk's state, check whether the insurer is admitted or the placement is surplus lines, and whether a guaranty-fund notice applies. Do not treat a brand name as admission in every state.^3,4,5