What is an Admitted Company?
An Admitted Company refers to an insurance provider that has received approval from a state’s insurance regulatory authority to offer insurance products within that state. Being “admitted” means the company complies with state regulations, including rate-setting and policy forms, ensuring that its practices are in line with state laws designed to protect consumers.
Admitted companies participate in state-guaranteed funds. This provides additional security to policyholders because if the insurance company becomes insolvent, the state’s guaranty fund can cover certain claims, offering an extra layer of protection.
For personal and business insurance policies, such as homeowners or car insurance, purchasing coverage from an admitted company ensures that the policyholder is backed by the state’s regulatory framework. This gives consumers peace of mind knowing that the insurer is financially stable and operating within legal guidelines.