General Insurance PrinciplesQuestion 191 of 474
In the jurisdiction where a policy is being written, an admitted insurer is one that:
a.was formed under the laws of the place where the risk sits
b.sells through employees rather than independent producers
c.holds a certificate of authority to write there
d.writes only coverage the standard market has already refused
Explanation
Admitted, or authorized, means the insurer has been licensed there and holds a certificate of authority; a non-admitted insurer lacks that license and can be used only through a surplus lines placement. Where an insurer was formed decides whether it is domestic, foreign or alien, which is a separate question from admission. How it distributes its product has no bearing on either.
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