Which type of insurance company does NOT operate under an individual state's insurance laws?

Non-admitted insurance companies do not operate under an individual state's insurance laws because they have not received a license to operate in that state. This typically means that they are not subject to the same state regulations and requirements as admitted companies, such as financial solvency and adherence to specific policy forms. Non-admitted insurers can write coverage that admitted insurers cannot, often filling specific gaps in the market or providing specialized forms of insurance.

While admitted, domestic, and foreign insurance companies are regulated by state laws, the non-admitted category operates outside that framework. This allows them more flexibility in terms of policy offerings, but it also means they do not enjoy the protection of state guaranty funds that are available to policyholders of admitted insurers in the event of insolvency. Consequently, policyholders with non-admitted insurers may have less assurance regarding the insurer's financial stability and claims-paying ability.