What Does Non-admitted Assets Mean?
Non-admitted assets are assets that insurance companies are not allowed to include in their financial statements. Non-admitted assets are the opposite of admitted assets, which are assets that are allowed to be included in an insurance company's various financial statements.
Insuranceopedia Explains Non-admitted Assets
Whether or not an asset is admitted or non-admitted for financial statements is very important for accounting purposes. Regulators need to be able to understand what types of assets an insurance company has in order to assess its solvency.
What qualifies as an admitted or non-admitted asset can vary from state to state. However, most states have similar qualifications for both of these asset classes. If an insurance company has a higher number of assets, it is usually a good thing.
Examples of non-admitted assets are fixtures and furniture.