What is a key characteristic of non-admitted insurers?

A key characteristic of non-admitted insurers is that they are not licensed in the specific state where they are providing coverage. Non-admitted insurers, often referred to as surplus lines insurers, operate outside the traditional regulatory framework that governs admitted insurers. They may offer specialized or high-risk coverage that admitted insurers cannot, and as a result, they do not need to meet the same licensing and capital requirements that apply to licensed insurers within that state.

This lack of a specific state license allows non-admitted insurers greater flexibility in underwriting and the ability to offer coverage for niche markets or risks that may be too high for admitted insurers to handle. Consequently, consumers and agents seeking insurance products that are not available in the standard market often turn to non-admitted insurers for viable solutions.