What are non-admitted insurers permitted to do in a state?

Non-admitted insurers are typically permitted to transact insurance business in a state, but with certain limitations. These insurers are not licensed by the state insurance department and, therefore, do not have the same regulatory safeguards as admitted insurers. Non-admitted insurers are often utilized for specialized types of coverage or high-risk situations where admitted insurers may not provide coverage.

While they can offer various forms of insurance, the key point is that they are allowed to operate within the regulatory framework of the state, often through a surplus lines broker who ensures compliance with certain requirements.

The other options involve specific characteristics or functions that non-admitted insurers may not universally offer or do not define their operational capabilities as clearly. Offering lower premiums, covering all types of risks, or serving as primary insurers are not guaranteed features of non-admitted insurers and typically depend on market conditions and the nature of the risks they cover.