Timothy Cline Insurance Agency, Inc.
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Pros And Cons
Admitted versus Non-Admitted in the State of California
Admitted Carrier
- Subject to rate and form approval.
- Dept. of Insurance also reviews carrier’s investment and reserve adequacy.
- Carrier participates in the California Insurance Guarantee Association (CIGA).
- CIGA limits a claim to $500,000 “per insured” and considers a CID a single insured.
Non-Admitted Carrier
- Is licensed to do business on a “non-admitted” basis, but is not subject to rate and form approval.
- Does not participate in the California Insurance Guarantee Association (CIGA).
- In most cases, is not “alien” or “offshore” usually is domiciled here in the United States.
- Is subject to the same rating agencies. (AM Best, Moody, et al)
- For more information please see the California Senate Insurance, Claims and Corporations Committee Bill Analysis, passed in 1993: Bill Analysis