What is the term for an insurance company that is not licensed in Indiana?

The term for an insurance company that is not licensed in Indiana is referred to as a non-admitted insurance company. Non-admitted insurers operate in states where they have not received approval from the state insurance department to provide coverage. These companies may offer unique or specialized coverage options that might not be readily available from admitted insurers.

Non-admitted insurers play a crucial role in the insurance market, particularly in providing coverage for high-risk individuals or businesses. Because they are not bound by state regulations in the same way as admitted companies, they often have more flexibility in policy terms and pricing. However, they do not have the same level of consumer protections that admitted insurers provide, such as guarantee funds that protect policyholders in the event of an insurer insolvency.

Other terms like admitted insurance company refer to those that are licensed and have met all requirements to operate in the state, while surplus lines insurance companies typically deal with non-admitted insurance by providing coverage when admitted policies are unavailable. Captive insurance companies are wholly-owned subsidiaries created to insure the risks of their parent company or group.