Home State

What is an Home State?

 

The state in which the insured maintains its principal place of business or, in the case of an individual, the individual’s principal residence; or if 100% of the insured risk is located out of the insured’s principal place of business or residence, then the state in which the greatest percentage of the insured’s taxable premium for that insurance contract is allocated.

 

Understanding Home State

 

An admitted insurance carrier is backed by a specific state. An admitted carrier can be admitted in one state but not another. To be an admitted carrier, an insurance company must comply with all of the regulations set by the state that has admitted them.

Working with admitted carriers provides added benefits to consumers. When purchasing policies from admitted carriers, consumers often experience the omission of certain fees and taxes. Consumers also have the right to appeal to the state if policies have been handled improperly. This sets admitted carriers apart from non-admitted insurance carriers.