What type of insurer is referred to as a non-admitted insurer?

A non-admitted insurer is defined as an insurer that is not licensed by the state to conduct insurance business. These insurers operate in the surplus lines market, which caters to risks that standard, admitted insurers are not willing or able to underwrite. Each state has regulations to govern non-admitted insurers, and they often provide coverage for specialized or higher-risk situations that may not fit into the conventional insurance framework.

This designation is significant because it allows these companies to provide coverage for unique risks that may vary from the standard policies available through admitted insurers. Non-admitted insurers can help fill gaps in coverage and offer flexibility in terms of underwriting standards, but consumers need to be aware that these policies might come with less regulatory oversight.