Far too often we encounter insurance requirements that require all insurers be Admitted. Presumably such requirements are intended to provide the certificate holder some comfort about the security of each insurer. Conversely, Nonadmitted insurers must provide less or insufficient security. While financial security of each insurer may be the goal, any additional protections afforded to the certificate holder by Admitted insurers are minimal at best and may be counterproductive.
Admitted insurers are subject to modest financial oversight by the states where they are admitted. The level of oversight varies from state to state.
Admitted insurers must file their rates, policy forms and endorsements to each state insurance department for specific review and approval. This process is long, complicated and expensive. With few exceptions, Admitted insurers must use their filed rates, policy forms and endorsements without deviation.
In some states Admitted insurers may be covered by a state administered guarantee fund. In California this fund