Which statement best describes consumer protections when dealing with admitted vs non-admitted insurers?

• A. Admitted carriers have rate and form approvals and state guaranty protections; non-admitted may offer specialized coverage but with different protections.
• B. Non-admitted carriers have stronger guarantees.
• C. Admitted carriers are unregulated.
• D. Non-admitted carriers are prohibited from selling policies.

Answer: (A)

Admitted carriers are authorized by the state and must file their rates and policy forms for approval, plus they participate in state guaranty funds that protect policyholders if an insurer fails. Non-admitted carriers can provide specialized or hard-to-place coverage not available from admitted insurers, but they operate under different protections and aren’t guaranteed by the same guaranty funds. So, the best description is that admitted carriers have rate and form approvals and state guaranty protections, while non-admitted may offer specialized coverage but with different protections.