Admitted Company
Categories: Insurance, Incorporation, Bonds
Insurance companies are mostly regulated by the states. This puts them in the same category as hunters, hair stylists, manicurists, and real estate brokers.
It also theoretically puts them in the same category as driver's licenses. But unlike a driver's license, where passing a road test in Butte, Montana, qualifies you to drive in New York City, an insurance company in one state isn't automatically allowed to do business in another. Instead, an insurance company has to go through the process of getting licensed in any new state it wants to move into.
Once this licensing process is complete, the company is "admitted" into the state. Thus it becomes an Admitted Company.
Just because a company is non-admitted doesn't necessarily mean you can't buy insurance from them. However, it's riskier, because there are fewer regulatory safeguards. Like getting a hair cut from an unlicensed hair stylist. Just ask Miley Cyrus.
