Admitted Carrier
Key Takeaway
An insurance company licensed and regulated by the state department of insurance in the state where it writes coverage. Admitted carriers must comply with state rate and form filing requirements, and their policyholders are protected by the state guaranty fund if the carrier becomes insolvent..
Definition
An insurance company licensed and regulated by the state department of insurance in the state where it writes coverage. Admitted carriers must comply with state rate and form filing requirements, and their policyholders are protected by the state guaranty fund if the carrier becomes insolvent.
Why This Matters for Law Firms
Regulatory requirements vary by state and are evolving rapidly. Law firms must stay current with these terms to maintain compliance with bar association rules, state insurance regulations, and client disclosure obligations. Non-compliance can result in disciplinary action, fines, or uninsured exposure.
Example Usage in Context
An attorney completing their annual bar registration might see this referenced: "The state bar asks about admitted carrier status. Make sure our firm's records are current and our response is accurate."
Related terms
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