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Building Owners » Hard To Place

High Risk Insurance Pros And Cons

Admitted versus Non-Admitted in the State of California

Admitted Carrier

  • Subject to rate and form approval.
  • Dept. of Insurance also reviews carrier’s investment and reserve adequacy.
  • Carrier participates in the California Insurance Guarantee Association (CIGA).
  • CIGA limits a claim to $500,000 “per insured” and considers a CID a single insured.

Non-Admitted Carrier

  • Is licensed to do business on a “non-admitted” basis, but is not subject to rate and form approval.
  • Does not participate in the California Insurance Guarantee Association (CIGA).
  • In most cases, is not “alien” or “offshore” usually is domiciled here in the United States.
  • Is subject to the same rating agencies. (AM Best, Moody, et al)
  • For more information please see the California Senate Insurance, Claims and Corporations Committee Bill Analysis, passed in 1993: Bill Analysis

 

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