What are admitted insurers?

Admitted insurers are those that have been licensed and approved to conduct insurance business in a specific state, including California. This designation means that the insurer has met the regulatory requirements set forth by the state's insurance department, ensuring compliance with local laws and regulations. Being an admitted insurer allows the company to offer policies and provide coverage to residents within that state while adhering to the state’s standards regarding consumer protection and financial stability.

This approval is significant because it often provides policyholders with protections not available when dealing with non-admitted insurers, such as guaranteed access to state guaranty funds in case of the insurer's insolvency. This reassurance makes admitted insurers a reliable option for consumers seeking insurance coverage.