What is the difference between admitted companies and nonadmitted companies?
Admitted or authorized companies hold a Certificate of Authority issued by the Commissioner showing that they are duly authorized to transact insurance business in this state. By becoming authorized in Delaware, these companies place themselves under the jurisdiction of the Delaware Insurance Commissioner, and are regulated by the Delaware Insurance Department. Most insurance coverage is placed through admitted insurers. Nonadmitted or unauthorized companies do not have a certificate of authority, but are deemed eligible to provide certain types of coverage if approved by the Department. Surplus Lines companies are not under the jurisdiction of the Delaware Insurance Commissioner, and though the Department monitors these companies, it is to a much lesser extent than the regulation of admitted companies. The regulation of surplus lines is largely accomplished by placing a number of requirements on the surplus lines brokers rather than the companies.
