New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    An insurance company not licensed to do business within

    a given state is called?
    A Product Liability Correct Answer Incorrect Answer
    B Pure Risk Correct Answer Incorrect Answer
    C Non-admitted Insurer Correct Answer Incorrect Answer
    D Proximate Clause Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Admitted insurance is insurance purchased from an insurance company that has been formally admitted or licensed to operate by the state insurance agency where the company operates. Admitted insurance companies are subject to various state laws that govern organization, capitalization, policy forms, rate approvals and claims handling, whereas non-admitted insurance companies are not subject to these regulations.

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