Admitted vs. Non-Admitted | What’s the Diff?

We’ve been getting a ton of questions on the Admitted vs. Non-admitted markets so we’re back with another “What’s the Diff” clarification! Let’s clear the air on the differences between the two and why exactly we put you’ll be going to the Non-Admitted market…

Admitted (Authorized) Insurer

Insurance Companies who are admitted, whether domestic (in your state), foreign (out of state) or alien (outside of the USA), are authorized to transact insurance in your state by your respective state Department of Insurance.

Non-Admitted (Unauthorized) Insurer

Non-admitted insurance companies are not authorized to transact insurance in your state.

Admitted vs. Non-Admitted

Refers to whether or not an insurer is approved or authorized to write business in this state. The Non Admitted Insurance Market also referred to as Non standard or Surplus Lines, applies to the group of insurance companies who are not domiciled in the state where you reside.

Why Go Non-Admitted?

Coverage is placed non-standard when it is not eligible for Admitted Insurance Market. The Non-Admitted market is reserved for certain applicants with special circumstances including:

• Non Traditional Practices (MedSpas, Alternative Medicine Clinics, Naturopaths, etc.)
• Practicing or adding services outside of Primary Specialty
• Nonrenewal due to claims, Board or licensing issues, etc.
• Bare Period of Coverage (Gap in Coverage)

NOTE: Non-Admitted premiums are calculated according to risk, you can prepare for moderate or significantly higher premiums. Some specialties have a minimum premium base according to the carriers comfort, determined by underwriting review, type of practice, procedures, loss history, board & licensing issues.  These carriers are not required to file rates and are not supported by your states’ Insurance Guarantee Fund.

If you’re still unsure as to why you’ve been given non-admitted coverage options, we’re happy to clear up any confusion, give us a call directly at 1-800-317-6411 or email us at info@presidioinsurance.com.

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