Welcome to the NEMT Risk Advisor Blog

Thank you for taking the time to visit my site specifically designed for educating non-emergency transportation business owners on risks that affect your company. Whether you operate several hundred units and have been servicing your community for years or are just getting started with a few units, I'm here to help advise you on further developing your company's risk management program which will, in turn, lower your overall costs of insurance over both the short and long term. Please don't hesitate to contact me with any questions, comments, or feedback. Thanks!


Josh Brownlee
jbrownlee45@gmail.com

Wednesday, April 20, 2011

The Difference Between Standard Carriers and the E&S Market

There are two different kinds of insurance carriers in the world today.  The admitted or standard markets, which most of you will recognize as the Travelers, Hartfords, and Liberty Mutuals of the world.  These carriers follow guidelines set forth by each states Department of Insurance (DOI). These carriers are required to file their rates with the DOI, which then approves their use. The carriers must use these filed rates on all clients and cannot deviate. Admitted carriers are also a part of each states guarantee fund which provides for protection for policyholders if a company becomes insolvent.

 Admitted carriers often do not meet all the needs of many insurance buyers. Non-admitted insurance carriers (sometimes referred to as excess and surplus lines carriers) offer an opportunity for coverage for specialty risks that might otherwise be un-insurable. Non-admitted carriers do not have to file their rates with the DOI and thus they retain the flexibility to price risks according to their specific exposures. While these companies are not licensed by the DOI, they do have to go through an approval process that includes providing evidence of minimum capital and surplus requirements. When these requirements have been met to the state DOI’s satisfaction, the DOI may approve a company to conduct business in that state.  Non-admitted carriers also require all premium to be paid up front resulting in the client to be forced into a premium finance agreement which adds another 10-15% of costs to an already inflated premium.

The reason I went into this explanation is that up until recently, all carriers who agreed to provide insurance for non-emergency transportation companies were Non-admitted carriers.  That is, until now...

1 comment:

  1. Wow! This blog is very relevant for me as I was searching for some information tips about medical insurance carriers. I have noted your contact information and will surely hire your services when I will need it. But I have a Question? Actually, I have search Non-Emergency Medical Transportation service policy but I cannot find information about it please help me. thanks

    ReplyDelete