--- title: "Admitted vs. Non-Admitted Carrier — Lapidar" url: https://getlapidar.com/glossary/admitted-vs-non-admitted-carrier/ description: "Admitted vs non-admitted insurers: licensing, guaranty fund, surplus lines tax, and why commission on each is checked differently." last_modified: "Wed, 14 Oct 2026 08:43:11 GMT" source: getlapidar.com (HTML converted to Markdown at the edge) --- Glossary · Insurance agency commissions # Admitted vs. non-admitted carrier An admitted carrier is an insurer licensed by a state’s insurance department to write business there; a non-admitted carrier is not licensed in that state but may cover risks there through a licensed surplus lines broker, without state guaranty fund protection. By Lapidar, the team building it · October 14, 2026 · Also called admitted insurer; authorized insurer; non-admitted insurer; nonadmitted carrier; surplus lines carrier ## What it means The NAIC [glossary](https://content.naic.org/glossary-insurance-terms) defines a non-admitted insurer as an “insurance company not licensed to do business within a given state.” The Texas Department of Insurance puts it the same way for its own market: “By definition, surplus lines companies are not licensed to sell insurance in Texas” ([Surplus Lines Companies](https://www.tdi.texas.gov/insurer/surpluslines.html)). The NAIC’s [surplus lines overview](https://content.naic.org/insurance-topics/surplus-lines) names the main consumer difference: “A consumer protection within the admitted market, but not available to the surplus lines market, is the protections of a state guaranty fund.” Placement also differs: an admitted carrier is reached through an ordinary appointment; a non-admitted one through a [surplus lines broker](https://getlapidar.com/glossary/surplus-lines-broker/), after any search of the admitted market the state requires. ### Why it matters for agency commissions Admitted business usually comes on the carrier’s own statement, at the rate in your commission schedule, with state premium tax built into the rate. Non-admitted business usually comes through a wholesaler or MGA, as a share of a total commission, with [surplus lines tax](https://getlapidar.com/glossary/surplus-lines-tax/) and fees billed on top and not commissionable. Checking both kinds against one expected rate is a common source of false alarms and missed shortfalls. Lapidar Lapidar checks carrier commission statements against your policy list and shows commission that is missing, short-paid or paid twice. One plan while it is in its founding pilot: USD 99 a month plus applicable tax, for up to 7 agencies, cancel anytime. [See pricing](https://getlapidar.com/pricing/?from=glossary-admitted-vs-non-admitted-carrier). Or [open an account](https://app.getlapidar.com/signup?from=glossary-admitted-vs-non-admitted-carrier). ## How it shows on a commission statement On an admitted carrier’s statement, expect premium, rate and commission per policy. On non-admitted business, expect a wholesaler statement or invoice with premium, tax, stamping fee and policy fee on separate lines and commission figured on premium only, often net of the wholesaler’s share. ## Example **Example data: one invented account with an admitted and a non-admitted policy.** | Policy | Market | Premium | Rate | Commission | | --- | --- | --- | --- | --- | | EX-71102 | Admitted, carrier statement | 4,000.00 | 15% | 600.00 | | EX-71103 | Non-admitted, via wholesaler | 6,000.00 | 10% | 600.00 | | EX-71103 | SL tax and fees | 330.00 | — | 0.00 | | Total | | | | 1,200.00 | The tax and fee line carries no commission; a statement that paid 10% on it would be wrong in your favor. Commission rates on this page are invented; your agency agreement and commission schedule set the real ones. ## Common mistakes to check - Applying a non-admitted policy’s commission to premium plus surplus lines tax and fees. - Looking for non-admitted policies on the carrier’s direct statement when the wholesaler pays them. - Comparing a retail share after the wholesaler with the admitted carrier’s gross rate. ## Questions ### What is the difference between an admitted and a non-admitted insurance company? An admitted company is licensed by the state insurance department. A non-admitted company is not licensed in that state but may write coverage there through a licensed surplus lines broker. ### Are non-admitted carriers covered by the state guaranty fund? According to the NAIC, state guaranty fund protection is available in the admitted market but not in the surplus lines market. ### Do agents earn the same commission on admitted and non-admitted business? Not necessarily. Non-admitted business often pays through a wholesaler, which keeps part of the commission, and taxes and fees on top of premium are generally not commissionable. ## Sources - National Association of Insurance Commissioners, [Glossary of Insurance Terms](https://content.naic.org/glossary-insurance-terms), entries for admitted company and non-admitted insurer. Retrieved October 14, 2026. - National Association of Insurance Commissioners, [Surplus Lines](https://content.naic.org/insurance-topics/surplus-lines), insurance topics page. Retrieved October 14, 2026. - Texas Department of Insurance, [Surplus Lines Companies](https://www.tdi.texas.gov/insurer/surpluslines.html). Retrieved October 14, 2026. Lapidar is [commission reconciliation software for independent insurance agencies](https://getlapidar.com/), in its founding pilot. Related: [surplus lines broker](https://getlapidar.com/glossary/surplus-lines-broker/). In this entry 1. [What it means](https://getlapidar.com/glossary/admitted-vs-non-admitted-carrier/#meaning) 2. [On a commission statement](https://getlapidar.com/glossary/admitted-vs-non-admitted-carrier/#on-statement) 3. [Example](https://getlapidar.com/glossary/admitted-vs-non-admitted-carrier/#example) 4. [Common mistakes](https://getlapidar.com/glossary/admitted-vs-non-admitted-carrier/#mistakes) 5. [Questions](https://getlapidar.com/glossary/admitted-vs-non-admitted-carrier/#faq) 6. [Sources](https://getlapidar.com/glossary/admitted-vs-non-admitted-carrier/#sources) All 95 terms, from account current to written premium. [Glossary A–Z](https://getlapidar.com/glossary/) Check admitted and wholesaler commission against the right rate. [See a sample report](https://getlapidar.com/sample-report/?from=glossary-admitted-vs-non-admitted-carrier) ## Reconciling statements is the hard part. Check admitted and wholesaler commission against the right rate. [See a sample report](https://getlapidar.com/sample-report/?from=glossary-admitted-vs-non-admitted-carrier), or read [how the founding pilot works](https://getlapidar.com/pilot/). [Open an account — founding pilot](https://app.getlapidar.com/signup?from=glossary-admitted-vs-non-admitted-carrier) [See pricing](https://getlapidar.com/pricing/?from=glossary-admitted-vs-non-admitted-carrier)