And what about Alien Insurance Companies, Foreign Insurers, Admitted Standard Market, and Non-Admitted or Surplus Lines…

What do all of these words really mean?

How do they AFFECT you?

What are YOUR RIGHTS in securing coverage through these markets?

Due to the complexity of the insurance requirements of a PAWNSHOP, you have all encountered the above names when securing insurance coverage for your business. Hopefully, the following SIMPLIFIED DEFINITIONS will clarify some of the confusion and explain which type of insurance carrier provides protection under the State’s Guaranty Fund.

ALIEN INSURER A company whose home office is located outside the U.S., such as Lloyd’s, London Companies or a company with its home office outside the US.

FOREIGN INSURER Home office domiciled in US; however, home office is located outside the State one lives in.

ADMITTED MARKET (a.k.a. STANDARD MARKET) An insurance company which meets the following criteria:
1. Capitalization requirements of State
2. Participation in the State’s Guaranty Fund, which protects the consumer.
3. Falls under the Jurisdiction of the Insurance Department.

NON-ADMITTED MARKET (a.k.a. SURPLUS LINES COMPANY) An insurance company not licensed by a particular state to sell and service insurance policies within that state.
1. Consumer not protected by the State’s Guaranty Fund.
2. Carrier not required to meet the State’s capitalization requirement.
3. Carrier is subject only to the minimum state regulations.

We hope these brief descriptions of insurance carriers will help you become a more educated insurance buyer the next time you are shopping your insurance coverage. Since your State’s Insurance Department is to serve the consumer, please feel free to contact them directly if you have any questions about an insurance company.

Questions? Call or Email us!
ASK FOR Seth, Laura or Dave
Toll-free (800) 545-5624
Union Life & Casualty Insurance Agency
5225 N. Central Avenue, Suite #110
Phoenix AZ 85012
Phone (602) 277-5555
Fax (602) 265-9763