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What is the difference between “admitted” and “non-admitted” insurance?

Posted by Tom Henell on Wed, Feb 08, 2012 @ 01:59 PM

It can be confusing to a client when they are informed that their insurance coverage is offered on a non-admitted (aka Excess & Surplus) basis.  The initial reaction may be that a policy that is non-admitted is inferior to an admitted policy.  This is not true, and as with all insurance, the policy should be judged on the actual policy wording, as well as, the financial strength of the insurance carrier. 

In addition, most states require insured’s who are placed with a non-admitted carrier to sign a form acknowledging that they are purchasing coverage on a non-admitted basis.  These forms can be intimidating and add to the concern and confusion.

Read our Frequently Asked Questions (FAQ's) to help clarify the difference between admitted and non-admitted insurance.

Tags: accountants, surplus, non-admitted, admitted