What might be an unexpected outcome for policyholders relying on non-admitted insurers?

Policyholders relying on non-admitted insurers may face higher claims settlement times. This can occur because non-admitted insurers are not regulated in the same manner as admitted insurers. They are not required to adhere to the same state regulations which may streamline claims processing and ensure consistency and timeliness in settlements. As a result, when a claim is made, there may be less oversight and standardization, leading to potential delays in how quickly the insurer processes and settles the claim.

In contrast, factors such as lower premiums, access to state-funded benefits, and receiving policy discounts are generally more associated with admitted insurers, which operate within the framework of state regulations designed to protect policyholders. Non-admitted insurers can offer lower premiums due to reduced regulatory costs and flexibility in underwriting, but that doesn’t guarantee efficiency in claims handling.