Admitted vs Non-Admitted

An admitted insurance company is licensed directly by each state where it operates, making insolvency fund contributions and following stricter regulation. In the event an admitted carrier becomes insolvent, the state’s insolvency fund will step in to cover any claims for the remainder of a policy.

Non-admitted carriers (also called Surplus Lines), are not bound by the same level of regulations, allowing them to quickly make changes to their policies, and cover risks that admitted insurers reject or cannot handle. They are typically more aggressive with pricing.

Choosing a non-admitted carrier can include drawbacks:

1. Financial Risk and Stability: If a non-admitted carrier becomes insolvent, state insolvency funds won't cover your losses. Verify the carrier's stability through sources like the National Association of Insurance Commissioners (NAIC), A.M. Best, Standard & Poor's, or Fitch.

2. Cancellation Terms: Understand the carrier's cancellation and non-renewal policies, especially for non-payment or increased risk, and be aware of alternative coverage options if needed.

What about Lloyd’s of London? Beltex places a significant of policies through Lloyd’s. A simplified explanation is that Lloyd’s is a marketplace that provides a mandatory carrier framework for policies, meaning that all policies are heavily regulated by the largest insurance carrier in the world, with an A+ financial rating.

Financial Strength Ratings

Rating agencies grade each carriers’ financial strength, indicating their ability to meet financial obligations to policyholders. Beltex only works with B+ (good) and above carriers, and in the majority of cases will not place coverage with any carrier below A- (Excellent) ratings. Learn more at www.AmBest.com