Which term refers to insurance that is not admitted in a state?

The term that refers to insurance not admitted in a state is "nonadmitted insurer." In the context of insurance regulation, nonadmitted insurers are those that have not been licensed or authorized by the state in which they are offering policies. These insurers can provide coverage in situations where traditional or admitted insurers may not want to take on the risk, often due to the unique or high-risk nature of the insurance being sought.

Nonadmitted insurance serves a crucial role in providing coverage options for insured parties who may not find suitable policies through admitted carriers. Admitted insurers, on the other hand, operate under state regulations and are subject to state oversight, including compliance with state insurance laws, which do not apply to nonadmitted insurers. This allows nonadmitted insurers potentially more flexibility in their offerings but also places the responsibility on the insured to ensure that the coverage meets their needs and complies with any applicable state regulations.

Understanding this distinction helps clarify the functioning of the insurance market and the options available to consumers, particularly in high-risk sectors or unique insurance scenarios.