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I get calls from insureds all the time who are concerned that because their insurance carrier is \u201cnon-admitted\u201d in California, the carrier somehow gets to play by a different set of rules when adjusting their claim. Some policyholders assume that if the insurer is a surplus lines carrier, California\u2019s claims-handling rules, known as the Fair Claims Settlement Practices Regulations<\/a>, simply do not apply. That is not the case.<\/p>\n This issue is becoming increasingly important because more and more California homeowners, particularly those with larger, more expensive homes in high-risk areas, are being pushed into the surplus lines market. Traditional admitted carriers are often unwilling to write coverage in certain wildfire-prone areas, leaving insureds with fewer options and, in many cases, non-admitted coverage. As that market grows, so does the number of policyholders who may mistakenly believe they have fewer protections when a claim arises.<\/p>\n There are certainly important differences between admitted and non-admitted insurers in California. Surplus lines insurers are not subject to all of the same rate and policy-form requirements that apply to admitted insurers, but that does not mean they are exempt from California\u2019s Fair Claims Settlement Practices Regulations when adjusting a California insurance claim.<\/p>\n