Admitted Carrier
An insurance company licensed by your state's insurance department. Its rates and forms are generally filed with the state.
What it means for your firm
If an admitted carrier fails, the state guaranty fund may pay covered claims, up to the fund's limits. Non-admitted, or surplus lines, carriers do not take part in guaranty funds.
Non-admitted carriers can still be strong companies. They are often used for risks admitted carriers will not write. Surplus lines policies carry a state surplus lines tax, which the broker collects.
Articles that explain it
General definition for education only. It is not an interpretation of any policy or contract, and it is not legal advice. The wording of your own policy and contract controls. Policies and definitions vary by insurance company.
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