Admitted VS Non-Admitted Insurers
ADMITTED INSURER vs NON-ADMITTED INSURERS: KNOW THE DIFFERENCE
ADMITTED INSURER:
A CALIFORNIA ADMITTED INSURER is one that is DOMICILED in California. Defined, domiciled refers to the state in which an insurance company receives a license to operate. The company is then regulated by that state’s Department of Insurance. Furthermore, an admitted carrier belongs to the California Insurance Guarantee Association. California law created this fund to assist you in paying claims or protecting your assets if your insurer becomes insolvent and is unable to make payments as promised under the terms of your insurance agreement with that carrier.
NON-ADMITTED OR SURPLUS LINES INSURER:
This type of insurer is not licensed by the State of California; however they are approved to conduct business in this state. A non-admitted insurer is not subject to the financial solvency regulation and enforcement, which applies to California, licensed insurers. Additionally, this type of insurer does not participate in any of the insurance guarantee funds created by California law. Surplus lines insurance carriers offer coverage that is not generally available in the standard market. Sometimes it is because the risk is more hazardous, it is unusual, it is a new operation or it is one with an adverse loss history. These insurance companies help to provide a competitive environment for the purchase of Property & Casualty Insurance.
As a retail agent, CAL-PRO has extensive knowledge of the products, coverage’s and underwriting requirements of the carriers we represent. The programs we recommend are always based on the particular requirements of your business and the exceptional value a specific type of insurer can offer you and your business.
Cal-Pro Insurance partnering together with Contractors State License Services endorse the following insurance coverage and plans:
- General Liability
- Workers’ Compensation
- Business Auto
- Equipment/Tool Coverage
- Risk Management/Claim Avoidance
- Premium Financing/Cash Flow Solutions