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Old 05-27-2020, 09:22 AM
Noonien Soong Noonien Soong is offline
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Default Can a carrier be admitted and non-admitted at the same time?

Maybe a dumb question, and i'm not sure the exposure exists for health or life and annuity writers, as i'm less familiar with those lines.


But say there is a "generic insurance company" can this company be admitted in some states for some lines, and non-admitted in other states for other lines? Or even, could this writer be admitted in some states for line AA, but non-admitted in other states for line AA?

I'm basically trying to wrap my head around if being a surplus lines carrier is an "all or nothing situation." Though it occurs to me a surplus lines carrier may be owned by an admitted carrier or have some other ownership relationship(dotted or full line) in an ownership structure.

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Old 05-27-2020, 09:49 AM
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Interesting, never thought about this. We have a couple stat companies I do work for, one admitted and the other not. Gonna ask about this because it sounds like being admitted is in the eyes of the state in which it complies.
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Old 05-27-2020, 10:12 AM
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Originally Posted by Noonien Soong View Post
Maybe a dumb question, and i'm not sure the exposure exists for health or life and annuity writers, as i'm less familiar with those lines.


But say there is a "generic insurance company" can this company be admitted in some states for some lines, and non-admitted in other states for other lines? Or even, could this writer be admitted in some states for line AA, but non-admitted in other states for line AA?

I'm basically trying to wrap my head around if being a surplus lines carrier is an "all or nothing situation." Though it occurs to me a surplus lines carrier may be owned by an admitted carrier or have some other ownership relationship(dotted or full line) in an ownership structure.

Humanly,

Noonien Soong
It may depend on the state, but I assume it's true for most states, you can be admitted for a given line in a state and be non-admitted for other lines in that same state. And certainly you can be admitted in some states for a given line and non-admitted in other states for that line. New York is probably a common example of a state where carriers may be admitted everywhere else, but non-admitted in NY.
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Old 05-27-2020, 10:47 AM
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It seems like that would be the case...I would expect each subsidiary would have to comply with the state regulations in which it is domiciled and where it writes business. Like for example, if you had two subsidaries, a company that writes personal aviation in Virginia and an E&S sub that underwrites chemical plant business in Texas, the personal aviation sub can't just start writing E&S business.

...I think...correct me if I'm wrong...this is just me reasoning it out here...
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Old 05-27-2020, 10:49 AM
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Interesting, never thought about this. We have a couple stat companies I do work for, one admitted and the other not. Gonna ask about this because it sounds like being admitted is in the eyes of the state in which it complies.
The way we do it is put it in a different write in company. We can't write both APD admitted and non-admitted on the same business. But we can write the APD non-admitted and the Auto Liability admitted.
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Old 05-27-2020, 11:12 AM
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As you mention, quite a few non-admitted companies have a sister company that is admitted. That's typical IMO.

Some (most?) states do not allow domiciled companies in their state to be non-admitted there, so a company domiciled there can be admitted while non-admitted elsewhere. I think this used to be true everywhere, and it's pretty recent that you can be domiciled and non-admitted in a state.
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Old 05-27-2020, 01:13 PM
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IIRC, non-admitted lines have additional hoops to jump through to justify having their book of business (i.e., proof that their insureds have sought coverage in the admitted market and was either refused or quoted an exorbitant rate for coverage).

While the upside is that the rate charged isn't directly subject to regulatory approval, the business is still subject to regulatory oversight. I believe that most companies that offer coverage through a non-admitted market (e.g., Excess & Surplus lines) are looking to provide a service to customers they want to still write (in the admitted market) and retain.
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Old 06-02-2020, 08:41 AM
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My company group includes and excess and surplus lines carrier that is an admitted carrier for one line of business in its domiciliary state. It does not write any other lines of business in this state.

It operates as a non-admitted carrier in other states, writing in the excess and surplus lines market.
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