{"id":6096,"date":"2021-04-19T13:07:45","date_gmt":"2021-04-19T19:07:45","guid":{"rendered":"https:\/\/www.noyeshallallen.com\/blog\/?p=6096"},"modified":"2021-08-18T11:48:07","modified_gmt":"2021-08-18T17:48:07","slug":"nonadmitted-insurance-in-maine","status":"publish","type":"post","link":"https:\/\/www.noyeshallallen.com\/blog\/nonadmitted-insurance-in-maine\/","title":{"rendered":"Non-Admitted Insurance in Maine"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\" id=\"mntl-sc-block_1-0-10\">\u201cNon-admitted\u201d insurance companies are not approved by the Maine Bureau of Insurance. But they play an important role in Maine&#8217;s insurance market. Non-admitted carriers are often called &#8220;surplus lines&#8221; or &#8220;excess lines&#8221; insurers. They take higher risks than admitted insurers. That comes at a cost. Here are the pros and cons of the non-admitted insurance market.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1004\" height=\"570\" src=\"https:\/\/www.noyeshallallen.com\/blog\/wp-content\/uploads\/2021\/08\/regulations-graphic.png\" alt=\"non-admitted insurance companies provide a valuable service, with some risk.\" class=\"wp-image-6209\" srcset=\"https:\/\/www.noyeshallallen.com\/blog\/wp-content\/uploads\/2021\/08\/regulations-graphic.png 1004w, https:\/\/www.noyeshallallen.com\/blog\/wp-content\/uploads\/2021\/08\/regulations-graphic-300x170.png 300w, https:\/\/www.noyeshallallen.com\/blog\/wp-content\/uploads\/2021\/08\/regulations-graphic-768x436.png 768w\" sizes=\"auto, (max-width: 1004px) 100vw, 1004px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">The Risk of Non-Admitted Insurance<\/h2>\n\n\n\n<ul class=\"wp-block-list\" id=\"mntl-sc-block_1-0-12\"><li>Non-admitted insurance companies&#8217; coverage forms are not approved by Maine regulators. Their customers don&#8217;t enjoy many of the Maine Insurance Code&#8217;s protections. But they are subject to federal regulation through the <a href=\"https:\/\/www.govinfo.gov\/content\/pkg\/PLAW-111publ203\/pdf\/PLAW-111publ203.pdf\" title=\"Dodd-Frank Act text\" target=\"_blank\" rel=\"noreferrer noopener\">Dodd-Frank Act (.pdf, 800+ pages)<\/a>. <\/li><li>In case of insurer insolvency, the Maine Guarantee Fund does not apply. Even if a&nbsp;policy is active, claims might not be paid if the company goes bankrupt.<\/li><li><a href=\"https:\/\/www.maine.gov\/pfr\/insurance\/consumer\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\" title=\"Maine Bureau of Insurance - consumer information\">The Maine Bureau of Insurance<\/a> doesn&#8217;t review or approve non-admitted insurance rates. They do with admitted insurers. Non-admitted insurers may charge what the market will bear. <\/li><li>Many non-admitted insurance policies have a &#8220;minimum earned premium&#8221; of 25% of the annual premium. Even if you cancel your policy right away, the insurer will keep 3 months&#8217; premium. <\/li><li>Non-admitted insurers may add separate policy fees to premium. Those are usually non-refundable. They must add Maine surplus lines tax to the premium, too. <\/li><\/ul>\n\n\n\n<div style=\"height:28px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\" id=\"mntl-sc-block_1-0-14\">Non-admitted insurance is often more expensive and provides less coverage. That&#8217;s why Maine only allows non-admitted carriers to insure risks that admitted carriers refuse.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Non-Admitted Insurance Can be Valuable<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Purchasing insurance from a non-admitted carrier isn&#8217;t ideal. But it is a valuable service. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Some protection is better than none. While non-admitted insurance coverage is restrictive, it can protect customers against catastrophe.<\/li><li>Non-admitted coverage can be a temporary solution. It can give you time to make improvements and qualify for insurance from an admitted insurer.<\/li><li>Most lenders will accept non-admitted policies as proof of insurance. Lenders require insurance from their borrowers in order to make a loan.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Be a Smart Insurance Consumer<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" id=\"mntl-sc-block_1-0-18\">Purchasing insurance from a non-admitted&nbsp;carrier&nbsp;can be risky. Since non-admitted insurers are not covered by the Maine Guaranty Fund, it&#8217;s important to research your insurer&#8217;s financial strength. But many non-admitted&nbsp;insurers have excellent <a href=\"http:\/\/www.ambest.com\/ratings\/guide.pdf\" title=\"Guide to AM Best Financial Strength Ratings\" target=\"_blank\" rel=\"noreferrer noopener\">A.M. Best financial ratings<\/a> (.pdf). Ask your agent about yours. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Non-admitted insurance proposals list all applicable exclusions, warrantees and coverage forms. You should at least understand them, even if you can&#8217;t change them. Your agent should be able to explain them to you. If you&#8217;re a client, your <a href=\"https:\/\/www.noyeshallallen.com\/meet-our-team.html\">Noyes Hall &amp; Allen Insurance agent<\/a> can answer questions about your insurance. We&#8217;re independent and committed to you. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Non-admitted insurance (excess &#038; surplus) companies insure what regular companies won&#8217;t. They&#8217;re costly and less regulated. Here&#8217;s what you need to know.<\/p>\n","protected":false},"author":2,"featured_media":6209,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21,22,11,13,1],"tags":[32,7,125,124],"class_list":["post-6096","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-insurance","category-business-liability-insurance","category-business-property-insurance-business-insurance","category-homeowners-insurance","category-insurance","tag-doing-business-in-maine","tag-living-in-maine","tag-non-admitted","tag-surplus-lines"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/posts\/6096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/comments?post=6096"}],"version-history":[{"count":13,"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/posts\/6096\/revisions"}],"predecessor-version":[{"id":6211,"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/posts\/6096\/revisions\/6211"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/media\/6209"}],"wp:attachment":[{"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/media?parent=6096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/categories?post=6096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/tags?post=6096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}