Which of the following statements is true about nonadmitted coverage?
A)They are written by companies authorized to write insurance in the country where a risk exposure is located.
B)They use the country's currency for premiums and claims.
C)Premiums are tax deductible in countries where nonadmitted coverage is permitted.
D)If they are prohibited in a country, claim payments must be made directly to the local subsidiary.
E)They use English, utilize terms and conditions familiar to U.S.risk managers, and provide flexibility in underwriting.

Question

Quizplus · Accepted Answer

Nonadmitted coverage refers to insurance provided by insurers not licensed in the jurisdiction where the risk is located. These policies often use English, incorporate terms and conditions familiar to U.S. risk managers, and offer more flexibility in underwriting compared to local admitted policies.

Which of the Following Statements Is True About Nonadmitted Coverage