What is a defining feature of an Admitted Insurer?

An Admitted Insurer is characterized by the requirement to comply with the regulations established by the state's Department of Insurance (DOI). This compliance ensures that the insurer meets certain financial standards, maintains adequate reserves, and follows the rules governing the insurance industry within that state. Being admitted gives policyholders a level of security, as they can trust that the insurer is authorized to operate in the state and is subject to oversight.

This regulatory framework protects consumers because admitted insurers must maintain specific solvency standards and can participate in state guarantee funds, which provide additional security to policyholders in case of insolvency. This level of oversight is not present with non-admitted insurers, which often do not have the same regulatory scrutiny, potentially leading to higher risks for consumers.