Homeowner Associations » Hard To Place

Pros And Cons of High Risk Insurance

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)