Which of the following statements about non-admitted insurers is correct?

Non-admitted insurers are those that have not been granted a license by the state to operate within that state, meaning they do not have to adhere to the same regulations as admitted insurers. A key aspect of non-admitted insurers is that when they become insolvent, the state does not provide a safety net or guarantee for the claims of policyholders. This lack of state support is crucial to understanding the risk associated with purchasing insurance from non-admitted companies.

State governments typically offer a safety net for policyholders of admitted insurers through guaranty funds, which are designed to protect policyholders in the event that an insurer becomes insolvent. However, this protection does not extend to non-admitted insurers. Because of this distinction, policyholders should be aware that while they may receive coverage from non-admitted insurers, they are taking on additional risks, particularly concerning the insurer's financial stability.

The other statements focus on regulatory aspects that do not apply to non-admitted insurers. For instance, they are not required to file their rates with state governments and, in fact, have more flexibility in pricing compared to admitted insurers. Additionally, since non-admitted insurers are not licensed by the state, they operate outside the typical state regulatory framework.