Admitted insurance is insurance that is provided by an insurance company that has been admitted or given a seal of approval by a state Department of Insurance. This differs from non-admitted insurance, which is insurance provided by companies that have not been licensed or approved by a state Department of Insurance.
Admitted insurance generally tends to be more reliable and secure for a few reasons. First, admitted insurance companies have already been evaluated by the state to make sure they are sound. Second, state departments of insurance will pay out claims for admitted insurers in the event that they fail. Third, policyholders with admitted insurance can file claims with state departments of insurance if they have a grievance about how a claim was handled
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