What does Admitted Company mean?
In insurance business, a company which is admitted is the one which although has its headquarters established in one state, it still has executive power in another. In order for being admitted by another state, the insurance company has to firstly get authorized by the respective state. Moreover, the company must agree to the rules, financial terms and conditions insurance companies work within the boundaries of in that state.
Admitted Company explained
Due to the regional differences, codes, financial terms and conditions, any insurance company which doesn’t operate its headquarters in the respective state is seen an “outsider”. Thus, without proper license or authorization, the company cannot sell its insurance policies except its place of residence. Once the company becomes an admitted company, then an authorized agent might proceed to selling the policies. Always after the expiration of the respective authorization, the respective insurance company is not allowed to further operate in that state.