How can a non-admitted insurer be classified?

The classification of a non-admitted insurer is primarily based on whether it is authorized or unauthorized to operate within a specific jurisdiction, such as a state. Non-admitted insurers are those that do not hold a license from the state to conduct insurance business but are allowed to offer certain types of coverage, especially in the surplus lines market. This classification is essential because it determines how the insurer interacts with state regulations and the liabilities incurred while providing insurance services.

While premium volume, geographical headquarters, and capital reserves may provide additional context about an insurer's operations or financial health, they do not fundamentally define the status of the insurer as non-admitted. Being classified as authorized or unauthorized is central to understanding the regulatory environment these insurers operate within and how they serve specific market needs.