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Insurance Company Solvency and Policyholder Protection
This article was originally published on line. With the near collapse of AIG, the world’s largest insurance company many people were asking questions about the financial soundness of a variety of insurance companies. All states have a guarantee fund that provides some measure of protection to policyholders however, the funds apply only to “Admitted” insurance companies as opposed to “Non-Admitted” insurance companies which are not covered by the guarantee funds. The point here is if you are renewing your corporate insurance program and have a choice between and admitted versus a Non-Admitted insurance company, you can make an informed decision.