What Is Admitted vs Non-Admitted Insurance?
How a state's license differs from surplus-lines placement, and what that means for supervision and guaranty-fund protection.
Licensed in That State, or Not
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]
What Status Does Not Prove
What to Confirm
Sources
- Glossary of Insurance Terms. National Association of Insurance Commissioners; Admitted Company: licensed to do business in a state(s); Nonadmitted Insurer: not licensed to do business within a given state; Surplus Line: specialized property or liability coverage available via nonadmitted insurers where coverage is not available through an admitted insurer licensed to sell that particular coverage in the state. Accessed 2026-09-21. Source 1.
- Glossary of Insurance Terms. California Department of Insurance; Admitted Company: an insurance company authorized to do business in California; Insurer: the insurance company. Accessed 2026-09-21. Source 2.
- California Insurance Code § 1764.1. California Legislative Information; Nonadmitted or surplus line insurers are not licensed by California; not subject to the solvency regulation that applies to California licensed insurers; do not participate in California insurance guarantee funds. Accessed 2026-09-21. Source 3.
- Surplus Line Insurers. California Department of Insurance; LASLI preapproved surplus line carriers and eligible carriers under CIC 1765.1 and 1765.2; CDI does not pre-approve eligible carriers. Accessed 2026-09-21. Source 4.
- Insurance License Types and Fees. Wisconsin Office of the Commissioner of Insurance; Surplus Line Agent sells insurance of a nondomestic insurer which has not obtained a certificate of authority to do business in this state; last updated June 1, 2026. Accessed 2026-09-21. Source 5.
