Non-Admitted Assets

Plain English Definition: Assets that an insurance company cannot include in its financial statements when calculating its financial strength.

What Non-Admitted Assets really mean for someone with an insurance policy

Non-admitted assets are excluded when assessing an insurance company’s financial health. These might include items like furniture, fixtures, and prepaid expenses, which have limited liquidation value.

Non-Admitted Assets Real World Examples

• An insurer’s office furniture is classified as a non-admitted asset because it cannot be quickly converted to cash.
• Prepaid advertising expenses are also considered non-admitted assets.
• An insurer with too many non-admitted assets may appear less financially stable to regulators.