Glossary term

Admitted insurer

An insurer licensed by a state to write business there, whose rates and forms are filed with that state's regulator. Its policies are backed by the state guaranty fund if the insurer fails.

Why it matters for your company

Admitted policies suit standard risks, because filed forms and rates leave the insurer little room to shape coverage for something unusual. Most workers' compensation and much small-business general liability is written this way.

Frontier risks often move to non-admitted insurers in the surplus lines market, which can write custom wording. The trade-off is that surplus lines policies are not backed by guaranty funds, and a licensed broker has to follow each state's surplus lines rules to place them.

Related terms

Surplus linesThe market of non-admitted insurers that write risks the standard market will not, with freedom to set their own forms and rates. A specially licensed broker places the policy and handles the state taxes and filings.
Broker of recordThe licensed broker an insurer recognises as representing you on a policy or a submission. A broker of record letter from you moves that authority to a different broker.
DeclinationAn insurer's refusal to quote or renew a risk. It records one insurer's appetite on one submission, and other insurers can see the same company differently.

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This page describes coverage in general terms. It is not an offer of insurance, and carrier appetite, policy wording, licensing, and availability govern every quote and every claim.