Admitted vs. Non-Admitted Carriers: What’s the Difference?
When comparing insurance options, you may come across the terms “admitted” and “non-admitted.”
These refer to the regulatory framework an insurer operates under—which can affect pricing, claims handling, and state protections.
Understanding this distinction is key to making an informed decision about your coverage.
| Feature | Admitted Carrier | Non-Admitted Carrier (Surplus Lines) |
|---|---|---|
| Regulated by | California Department of Insurance (CDI) | Not directly regulated by the state |
| State Guaranty Fund Protection | Yes | No |
| Who Uses Them | Standard risks (homes, autos, small businesses) | Unique, high-risk, or hard-to-insure properties |
| Extra Taxes or Fees | None | Around 3–4% surplus lines tax plus stamping fee |
| Flexibility in Coverage | Limited by state filings | High—customized forms and broader limits |
| Example Carriers | Mercury, Travelers, Liberty Mutual | Lloyd’s, Scottsdale, Lexington |
In this article we’ll cover:
What is an admitted carrier?
An admitted carrier is an insurer approved by the California Department of Insurance (CDI).
They must follow state regulations on rates, forms, and consumer protections.
For policyholders, this means:
No surplus fees or taxes – Premiums are typically lower due to state oversight.
State-backed protection – If the insurer becomes insolvent, the state guaranty fund helps pay valid claims.
Regulatory support – Policyholders can appeal disputes or unfair practices through the CDI.
These carriers are the foundation of the traditional insurance market—and often the first place we look for coverage.
A non-admitted carrier (also called a surplus lines or excess insurer) operates without state approval.
They’re not bound by state rate filings, which allows them to take on higher-risk policies that admitted insurers won’t write—like homes in wildfire zones or large commercial buildings.
For policyholders, this means:
Extra costs – A small surplus lines tax (~4% of premium) and a stamping fee apply.
No state guaranty protection – If the insurer fails, the state won’t cover claims.
No appeal rights – Complaints are handled directly with the carrier or surplus lines broker.
Despite these drawbacks, non-admitted markets fill a crucial gap—especially in California, where admitted insurers continue to withdraw from certain areas.
It might seem like admitted carriers are always the “safe” pick—but not necessarily. Non-admitted carriers fill an important gap in today’s market. They can offer creative solutions for higher-risk homes, businesses with unique exposures, or anyone who’s struggled to find coverage elsewhere.
The right answer really depends on the company’s financial stability and how well the policy fits your needs. Review A.M. Best ratings when comparing options—because sometimes, a strong non-admitted carrier with an A+ rating may offer better long-term protection than a lower-rated admitted company.
How Wang Insurance can help
At Wang Insurance, we work with both admitted and non-admitted carriers every day.
Our job is to help you navigate this complex landscape—finding reliable coverage from financially strong insurers, even in tough markets.
We:
Research and compare admitted and non-admitted options for your specific needs
Explain and display all surplus lines taxes, fees, and compliance documents up front
Only partner with A-rated carriers (or higher) vetted for stability and claim performance
Stay on top of California market changes and availability
Whether your property qualifies for a standard carrier or requires a specialty market, we’ll guide you toward the best balance of protection, price, and peace of mind.
