Homeowner Associations »
High Risk Insurance Definitions
Admitted Carrier: Licensed to transact business in the state
in which it operates. They are bound by solvency laws, meaning
they are supported financially in case of a bankruptcy. If
an admitted carrier becomes insolvent, the client’s claim
would still be paid.
Non-Admitted Carrier: Not licensed to transact business in
the state in which it operates. They are not bound by solvency
laws, and in the case of a bankruptcy, the client’s claim
would not be paid.
Solvent: Financial stability of a company; able to fulfill
its monetary obligations
Insolvent: The inability of a company to cover its financial
obligations. When a carrier becomes insolvent, it can no longer
pay claims.