1.4 Insurer Domicile and Admittance

Question 1

What is a Domicile?

Answer 1

Refers to the jurisdiction (i.e., state or country) where an insurer is formed or incorporated

Question 2

What is a 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.

Example: An insurer incorporated in New York is considered domestic to New York.

Question 3

What is a Foreign Insurer?

Answer 3

An insurer organized under the laws of any other state, possession, territory, or the District of Columbia of the United States, whether or not it is admitted to do business in this state.

Example: An insurer incorporated in New York is considered foreign to Kansas.

Question 4

What is an Alien Insurer?

Answer 4

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

Example: An insurer incorporated in Ontario, Canada, is considered alien to New York.

Question 5

Admitted vs. Non-admitted

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
An Admitted (Authorized) insurer is authorized by this State’s Commissioner of Insurance to do business in this State and has received a Certificate of Authority to do business in this State

A Non-Admitted (Unauthorized) insurer has either applied for authorization to do business in this State and was declined or they have not applied. They do not have a Certificate of Authority to do business in the State

The domicile does not impact whether an insurer may be admitted to do business in this State. Surplus (Excess) Lines insurance can be placed through non-admitted carriers

Question 6

What is Surplus Lines Insurance?

Answer 6

Finds coverage when insurance cannot be obtained from admitted insurers. However, it cannot be utilized solely to receive lower cost coverage than would be available from an admitted carrier.

Each State regulates the procurement of Surplus Lines insurance in its State.

Can be placed through non-admitted carriers. Non-admitted business must be transacted through a Surplus Lines Broker or Producer.