Admitted Company

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DEFINITION of 'Admitted Company'

An insurance company that is domiciled in one state but is admitted by another state to transact insurance business. Because insurance licenses are governed by the states, an insurance company must be licensed by each state where it intends to conduct business, and must comply with each state's insurance codes, including financial requirements.

INVESTOPEDIA EXPLAINS 'Admitted Company'

An insurance company is considered a "foreign," "alien" or "nonresident" company except in the state in which its primary offices are domiciled. In addition, any person selling insurance of an admitted company must be licensed in that particular state.

RELATED TERMS
  1. Admitted Insurance

    Insurance purchased from a company that is admitted (or licensed) ...
  2. National Association of Insurance ...

    A nationwide organization whose main responsibility is to protect ...
  3. State Guaranty Fund

    A fund administered by a U.S. state to protect policy holders ...
  4. Statutory Accounting Principles ...

    A set of accounting regulations prescribed by the National Association ...
  5. Insurance

    A contract (policy) in which an individual or entity receives ...
  6. Admitted Assets

    Assets of an insurance company that are permitted by state law ...
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