What is a non-admitted insurer?

A non-admitted insurer is defined as an insurer that has not sought, or is not granted, approval to transact business in a particular state. This means that the insurer does not meet the regulatory requirements or has not gone through the process to be licensed in that jurisdiction. As a result, non-admitted insurers often operate under different rules compared to admitted insurers, particularly in terms of the products they can offer and their regulatory oversight.

Non-admitted insurers might be allowed to provide certain types of coverage that licensed carriers may not for risks deemed too high or unique. Businesses often utilize non-admitted insurers for specialized insurance needs or when coverage is not available through admitted carriers.

The other options pertain to characteristics that do not define a non-admitted insurer. For instance, being licensed in multiple states pertains to admitted insurers, while guaranteed issue policies have to do with specific underwriting practices rather than insurer status. Additionally, the focus on only offering life insurance does not encompass the broad operational scope of non-admitted insurers, which can include various types of coverage beyond life insurance.