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Admitted:  An admitted insurance company is one that has been approved and licensed by the state’s insurance department and must comply with all rules and regulations. 

Benefits of buying from an admitted insurance company as an individual or business owner:

· No fees or taxes when purchasing a policy.

· If the company goes bankrupt the SC Property and Casualty Insurance Guaranty Association will step in to take over and pay out the remaining claims (subject to terms).

*   All 50 states and the District of Columbia operate with a property and casualty guarantee fund – their terms can vary.

· You are able to appeal your case/claim if you think your insurance carrier personally handled it improperly.

Non-Admitted (Surplus or excess line insurers):  These carriers are not regulated by the state, which also means they do not contribute and therefore are not afforded coverage by the State Guaranty Fund.  This is what protects clients from bankruptcy of their insurance carrier.  What this means:

· Not required to follow/abide by all the state insurance rules and regulations set forth.

· If the insurance company goes bankrupt there is no guarantee that your claim will be paid.

· You are not able to appeal any case/claim to Department of Insurance regardless whether or not you thought it was handled improperly.

How do you decide which type of carrier to use?

Chances are, for most people, that your insurance policy is written by an admitted carrier.  However, there are many times where it may be difficult or impossible to obtain coverage through an admitted carrier.  Some examples are homes in high risk areas, high profile individuals, high value homes, or properties with an excessive amount of claims.  So non-admitted policies are fairly common and are definitely needed in the market.  A common misconception about these two types of insurance is that one is more risky then the other, which is not necessarily the case.  Non-admitted companies have the ability to provide for more flexible premiums considering they don’t have to get everything approved.  Many non-admitted carriers are among the largest providers in the world.  In fact, they can often be more financially secure than some of their admitted counterparts.  If you have any questions regarding the differences between an admitted versus non-admitted insurance company or would like to know about your own personal policy please don’t hesitate to give us a call at Davis & Massey Insurance Agency.  Feel free to visit or to read more on this topic. / (843)839-9229

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