Dealing with a Non-Admitted Life Insurance Company

When you are purchasing life insurance, you will be able to choose between dealing with an admitted life insurance company and a non-admitted life insurance company. Here are the basics of non-admitted life insurance companies and how to deal with them.

Non-Admitted Life Insurance Company

A non-admitted life insurance company is one that is not registered to do business in the state in which you live. Admitted insurance companies are licensed in your state and they adhere to all of the rules are set forth by the state.

Guaranty Fund

If your company is a non-admitted life insurance company, they will not be able to be a member of the guaranty fund of the state. This means that if the company goes bankrupt, no one will be able to pay claims on behalf of that company. If an admitted company goes bankrupt, the state guaranty fund will step in and pay claims for the company.

Working with A Non-Admitted Life Insurance Company

Even though it might seem risky, you can sometimes benefit by working with a non-admitted life insurance company. Sometimes, they will have cheaper rates on their policies. They may also have access to policies that you cannot get from other insurance companies in your state.

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