Insurance written by an insurer licensed to do business in the state or country in which the insured exposure is located.
Insurance Encyclopedia
Admitted Insurance or Reinsurance
Insurance from an insurer who is licensed to do business in India or a given country. Reinsurance from a reinsurer who is licensed or approved to business in India or a given country.
Admitted Insured or Admitted Company
When an insurance company receives authorization from a state’s insurance commission or department to operate within the state, it is called an admitted insurer, or admitted company. Although the procedure to gain admittance varies from state to state, the insurance department is looking at financial information presented by the insurance company to determine the company’s financial stability. Companies that demonstrate financial stability receive admitted status. Admitted reinsurers are required to follow the same procedure. In contrast, a non-admitted insurer or reinsurer is one that is not licensed to do business in which the coveredexposure is located. Non-admitted insurers are not regulated by the state department of insurance and are not members of the state’s guaranty fund.An approved non-admitted insurance or reinsurance company is not licensed in the state in which it does business but has been approved by the state’s department of insurance to conduct business in the state because it is has posted a surety bond or trust fund. State departments of insurance have limited jurisdiction over approved non-admitted companies and such companies are not members of the state’s guaranty fund.
Admitted Insurer
Insurer, licensed to do business in a particular country, regardless of where that Insurer is domiciled.
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An insurer licensed to do business in the state or country in which the insured exposure is located.
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An insurer authorised to transact business from within a foreign country. The insurance transacted is known as establishment business.
Admitted liability insurance
(automatic personal accident cover). A personal accident insurance for aircraft passengers offering benefits in return for which they waive any rights they may have at law. The maximum sum payable usually corresponds with the limits of either the Warsaw Convention, the Hague Protocol or the 1967 Carriage by Air (Applications and Provisions) Order.
Admitted Liability, Aviation
A coverage for guests in an aircraft. In the event of an accident, with this coverage guests can recover without having to go through a determination as to whether or not the insured was liable. It is written with a limit per seat in the aircraft.
Admitted market
The range of insurance available through admitted insurance companies.
Admitted reinsurance
A company is admitted when it has been licensed and accepted by appropriate insurance governmental authorities of a state or country. In determining its financial condition a ceding insurer is allowed to take credit for the unearned premiums and unpaid claims on the risks reinsured if the reinsurance is placed in an admitted reinsurance company.
Admitted Reinsurer
A Company is deemed to be “admitted” in India when it has been licensed and accepted by IRDA. In determining its financial condition a ceding insurer is allowed to take credit for the unearned premiums and unpaid claims on the risks reinsured if the reinsurance is placed in an admitted reinsurance company.
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US, MEDICAL: Reinsurer licensed to accept reinsurance in a given region in the United States. Also called an authorized reinsurer.
Admitted Seaworthiness
There is an implied warranty in a marine cargo policy that the ship used to carriage is seaworthy and reasonably fit to carry the cargo to its destination. As the cargo owner can often not control the seaworthiness of a ship, insurers usually include a clause in the policy to modify the implied warranty.