What is the difference between admitted and surplus-lines carriers?
Quick answer:
Admitted carriers are state-licensed and backed by the guaranty fund. Surplus lines write hard-to-place risks at higher cost.
Admitted carriers are licensed and regulated by the state, with state guaranty fund protection if the carrier becomes insolvent. Non-admitted (surplus lines) carriers are not licensed by the state directly and generally not protected by the guaranty fund. Surplus lines write risks the standard market declines: older homes, prior claims, high-value coastal properties, unusual situations. Premiums often run 30 to 60 percent higher than admitted. See the full definition on our Insurance Terms page at /insurance-terms.