What does it mean when an insurance product is “admitted”?

If you’ve ever been tasked with researching and evaluating insurance products, you know it’s not exactly the most straightforward process. 

You’ll come across lots of industry-specific terms that mean nothing to anyone outside of the world of insurance—but understanding what these terms mean is essential to making sure you’re choosing a provider and product that’s right for your needs. 

One of the most common of these is “admitted.” (And sometimes, on the flip side, “non-admitted.”) That’s why in this post, we’ll get into what, exactly, that means, and why it matters for anyone considering purchasing an insurance product.   

What does it mean when an insurance product is “admitted”? 

When an insurance product is “admitted,” this means it’s been approved by the Department of Insurance in the state (or states) in which it’s sold. Every state has its own requirements, so providers that want to sell admitted products across the U.S. must file with each state’s insurance commissioner and make sure they’re compliant with individual state regulations. 

After a product has been admitted, the provider must remain compliant with all state insurance regulations and can’t change its pricing model or contracts (or what is and isn’t covered by the policy) without re-filing with each state’s Department of Insurance. 

Admitted status also means that if the insurance company fails, the state will make claim payments to its policyholders, adding an extra layer of protection. Plus, if a customer believes that a claim is not handled properly, they can appeal to their state’s insurance department. 

Does it really matter whether an insurance product is admitted? 

In a word: yes. 

The alternative to an admitted insurance product is a non-admitted product. Consumers can only access these if an admitted product is not available, or if they haven’t met the underwriting requirements of admitted carriers. 

Unlike admitted products, providers selling non-admitted products aren’t required to follow state insurance regulations. This means they’re able to change their pricing model, along with what is and isn’t covered by their products at will, without approval from each state’s Department of Insurance. 

It also means that if the company fails, there’s no guarantee that their policyholders’ claims will be paid—and those policyholders won’t be able to appeal to their state’s insurance department, either. 

Finally, it’s worth mentioning that as more states introduce legislation mandating that properties offer their residents an alternative to cash deposits, these laws can require any insurance products offered as an alternative to be approved by the state. This means that for properties looking to stay ahead of the curve and choose a deposit alternative ahead of impending legislation, selecting one that’s admitted is a must. 

Jetty’s products are admitted, regulated, and safe

Jetty has gone through the rigorous process of getting our products admitted by each state’s Department of Insurance. Our products are held to the highest risk standards, so you never have to worry about lapsed coverage or unpaid claims.

We’re also backed by Munich Re, the world’s largest reinsurer, and their balance sheet of $275B. 

This means we’re a safe choice—both for properties, and for the residents that purchase our products. 

Want to learn more about Jetty?
If you’re interested in offering Jetty’s (admitted!) products at your properties, e-mail us at partners@jetty.com to get started.
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