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

In Ohio, admitted and non-admitted insurance companies are regulated differently. Admitted insurance companies are licensed by the Ohio Department of Insurance and are allowed to provide insurance policies in the state. These companies are monitored by the Department of Insurance and must comply with state regulations. Non-admitted insurance companies are not licensed by the Ohio Department of Insurance, and therefore are not required to follow state regulations. These companies are typically used when an insurance policy cannot be found through an admitted insurer. Non-admitted insurance companies are not subject to direct oversight from the state, however, they are still legally obligated to pay claims made by policyholders. Admitted insurance companies are more heavily regulated and must meet certain state requirements, like providing specific forms of coverage and meeting certain financial requirements. Non-admitted companies are not required to meet these standards and may provide policies with different coverage options or with higher levels of risk. In conclusion, the main difference between admitted and non-admitted insurance companies is that admitted companies are regulated by the Ohio Department of Insurance and must meet certain state requirements, while non-admitted companies are not regulated by the state and are not required to meet these requirements.

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

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