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

In North Dakota, the difference between admitted and non-admitted insurance companies is regulated by the North Dakota Insurance Department. Admitted insurance companies are licensed to do business in the state while non-admitted insurance companies are not. Admitted insurance companies must adhere to all state insurance regulations, such as filing rates, forms, statutes, and regulations. Non-admitted or surplus lines insurance companies are not subject to this same regulation, but they must be properly licensed and approved by the state insurance department to do business. Admitted insurance companies typically offer more comprehensive coverage options and often provide additional protection for policyholders. Because they are subject to state regulation, admitted insurance companies are more likely to be financially secure. Non-admitted insurance companies, on the other hand, generally provide more specialized types of coverage and may not always offer the same level of financial protection to policyholders. Overall, the differences between admitted and non-admitted insurance companies in North Dakota can be defined by the regulatory requirements they must meet. Admitted insurance companies must adhere to all state insurance regulations to do business, while non-admitted insurance companies are not subject to these same regulations but must be approved by the state insurance department to do business.

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

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