Clearing up the Myths of the Surplus Lines Marketplace
Admitted insurance carriers in the State of Hawaii have an office that is domiciled in the state and have rates filed with the insurance division. They also belong to the Hawaii Insurance Guaranty Association (HIGA), which is set up to protect the insured in case the carrier is unable to pay its claims. The HIGA provides for full coverage amounts on workers compensation claims but will only pay up to $300,000 per claim on any other coverages.
Non-admitted carriers don’t belong to the fund and are not regulated by the insurance division. They are brought into the state by those who carry a license to do so (surplus lines license).
The non-admitted carriers are domiciled in other states, and those carriers utilized by Aloha Insurance, are normally “A” or better rated and very financially strong…often times more financially strong than admitted carriers.
Aloha Insurance makes a diligent effort to utilize admitted carriers whenever possible and when it will benefit the customer.