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High Risk Insurance Definitions

Admitted Carrier: Licensed to transact business in the state in which it operates. They are bound by solvency laws, meaning they are supported financially in case of a bankruptcy. If an admitted carrier becomes insolvent, the client’s claim would still be paid.

Non-Admitted Carrier: Not licensed to transact business in the state in which it operates. They are not bound by solvency laws, and in the case of a bankruptcy, the client’s claim would not be paid.

Solvent: Financial stability of a company; able to fulfill its monetary obligations

Insolvent: The inability of a company to cover its financial obligations. When a carrier becomes insolvent, it can no longer pay claims.

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