What describes a company that is not licensed to conduct insurance in Indiana but is licensed in another state?

A company that is not licensed to conduct insurance in Indiana but holds a license in another state is best described as a non-admitted insurance company. Non-admitted insurance companies are those that do not have the necessary license from the state’s insurance regulatory authority to operate within that particular state, in this case, Indiana.

These companies are typically allowed to operate on a surplus lines basis, which means they can provide coverage in states where they are not admitted as long as the buyer meets certain criteria, often involving specialized or high-risk coverage. Non-admitted insurers may provide coverage that admitted insurers do not, but they also do not have the same regulatory protections for policyholders.

In contrast, an admitted insurance company is one that is licensed and operates under the regulatory framework of the state in which it conducts business. A foreign insurance company refers to an insurer that is licensed to operate in a state but is based in a different state; while it may share similarities with the non-admitted category in terms of interstate operations, it is properly licensed in the state where it operates. A restricted insurance company typically has specific limitations placed on its operations or the types of policies it can write within the regulatory framework of insurance acts, which does not apply in this situation.