The truth about admitted insurance
All of the Admitted Insurance Companies (companies that are admitted by the State of Florida – Office of Insurance Regulation to do business in FL) must register their rate tables with the State.
Any premium increases or reductions must be approved by the state before they can be put to market. The trick is to make sure that your agent is acting on behalf of one of these Admitted Carriers.
There are many non-admitted companies that are conducting business in this region, especially in the areas of Health Insurance, or Health programs. To a lesser extent, there are also some non-admitted companies doing business in the Property & Casualty arenas.
What’s the difference between admitted vs non-admitted insurance companies
Non-Admitted companies are not monitored and regulated like the Admitted companies are, and as such are not bound by the same laws as the Florida Admitted Companies.
These non-admitted companies usually are following the laws of their home states. Where this becomes a problem is when there is an issue.
Perhaps they go out of business, or deny a claim to you, or there is suspect policy language. With a non-admitted entity, there is little to no recourse for the consumer.
For this reason, I advise you to follow the principle of caveat emptor – Latin for ‘buyer beware‘.
When a rate or premium is quoted to you that simply is too good to be true, the first place to check would be the State website and search the name of the insurance company to insure that they are admitted.
By doing this simple step, you might save yourself much heartache in the future and avoid spending money on an insurance policy that might not be all that it is cracked up to be.
Click on link to go to Florida Office of Insurance Regulation, Admitted Company Search
Photo Credit – NASA