Admitted vs. Non-Admitted Insurance - What Agents Need to Know

Admitted and non-admitted describe how a carrier is regulated in a state, not whether it is financially sound. Both matter to how you place a risk.

Admitted carriers

• →Licensed by the state and backed by the state guaranty fund
• →File their rates and forms with the state
• →The right home for standard, clean risks

Non-admitted (surplus lines / E&S) carriers

• →Not licensed in the state, so not backed by the guaranty fund
• →Free to price and write coverage forms the admitted market won't
• →Where hard-to-place, high-hazard, and unusual risks go

When your client needs non-admitted

• ✓Admitted carriers declined the risk
• ✓The class is new, seasonal, or high-hazard
• ✓The account has heavy losses, or needs coverage standard forms don't offer

What it means for you

• →Non-admitted business runs through a surplus lines broker like Baker
• →The state usually requires a diligent search showing admitted carriers were tried first

** Terms used here are a summary only. Always refer to the policy form for actual terms, conditions, and exclusions.