What is the difference between admitted and non-admitted insurance companies?

Admitted and non-admitted insurance companies are two different types of insurers that operate in California. Admitted insurance companies are those that are licensed by the California Department of Insurance. These insurers meet the financial strength, licensing, and other requirements to be licensed by the state. Non-admitted insurance companies are not licensed by the California Department of Insurance. These companies do not meet the financial strength, licensing, and other requirements to be licensed by the state. Non-admitted insurers do not have the same amount of regulatory oversight as admitted insurers. They often have fewer consumer protections and higher premiums. Admitted insurers may be more expensive than non-admitted insurers in the short term, but they also have more consumer protections and are better regulated. Admitted insurance companies also have access to the California Insurance Guaranty Association, which can help pay off policyholders in the case of an insurance company insolvency. Non-admitted insurers may have lower premiums than admitted companies, but consumers should be aware that they may not have the same consumer protections. It is important to research any insurer before making a purchase. California consumers should check to see if an insurer is licensed by the California Department of Insurance before purchasing a policy.

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What is the difference between admitted and non-admitted insurance companies?

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