1.4 Insurer Domicile and Admittance

Question 1

Insurer Domicile and Admittance

Answer 1

Domicile refers to the jurisdiction (i.e., state or country) where an insurer is formed or incorporated. There are three types of Insurer domiciles:

Question 2

Domestic Insurer

Answer 2

An insurer organized under the laws of this state, whether or not it is admitted to do business in this state.

Question 3

Foreign Insurer

Answer 3

An insurer not organized under the laws of this state, but in one of the other states or jurisdictions within the United States, whether or not it is admitted to do business in the state or jurisdiction.

Question 4

Alien Insurer

Answer 4

An insurer organized under the laws of any jurisdiction outside of the United States, whether or not it is admitted to do business in this state.

Question 5

Admitted vs. Nonadmitted

Answer 5

Refers to whether or not an insurer is approved or authorized to write business in this State. The domicile does not impact whether an insurer may be admitted to do business in this State.

Question 6

An Admitted (Authorized) insurer

Answer 6

is authorized by this State’s Commissioner of Insurance to do business in this State. It has received a Certificate of Authority to do business in this State.

Question 7

A Non-admitted (Unauthorized) insurer

Answer 7

has either applied for authorization to do business in this state and was declined or they have not applied. They are not authorized to transact insurance in this state.

Question 8

Surplus and Excess lines insurance

Answer 8

can be placed through non-admitted carriers.

Question 9

Surplus (excess) Lines Insurance

Answer 9

finds coverage when the kind or amount of insurance cannot be obtained from admitted insurers.
• It may not be utilized solely to receive lower cost coverage than would be available from an admitted carrier.
• Each State regulates the procurement on Surplus Lines insurance in their State.
• non admitted insurance must be transacted through surplus lines broker.