is obie insurance admitted in california​

by

As of my knowledge cutoff in October 2023, Obie Insurance is not an admitted insurance carrier in California or any other state. Obie operates as a surplus lines insurer, which means it is not subject to the same regulations as admitted carriers. Here’s what you need to know:

What Is an Admitted vs. Non-Admitted (Surplus Lines) Insurer?

  1. Admitted Insurers:
    • These insurers are licensed and regulated by the state’s Department of Insurance.
    • They comply with state-specific rules and rates.
    • If an admitted insurer fails, the state guarantees payment of claims through its guaranty fund.
  2. Non-Admitted (Surplus Lines) Insurers:
    • These insurers are not licensed by the state but are allowed to provide coverage in certain situations.
    • They often cover unique or high-risk situations that admitted insurers won’t.
    • Policies from non-admitted insurers are not backed by the state guaranty fund, meaning there’s no state protection if the insurer fails.

Obie Insurance in California

  • Obie specializes in landlord insurance and rental property insurance, offering tailored coverage for property owners.
  • While Obie is not an admitted carrier, it is legally allowed to operate in California as a surplus lines insurer.
  • This means Obie can provide coverage for landlords and property owners who may not find suitable policies through admitted carriers.

Key Considerations for Using Obie in California

  1. No State Guaranty Fund Protection:
    Since Obie is non-admitted, your policy is not protected by the California Insurance Guaranty Association. If Obie were to become insolvent, you would not have state-backed recourse for unpaid claims.
  2. Specialized Coverage:
    Obie is a good option for landlords with unique or high-risk properties that may not qualify for coverage from admitted carriers.
  3. Broker Involvement:
    Surplus lines policies, like those from Obie, must typically be purchased through a licensed surplus lines broker in California.
  4. Compliance with State Laws:
    Even as a surplus lines insurer, Obie must comply with certain California insurance regulations, such as filing rates and forms with the state.

How to Verify Obie’s Status in California

To confirm Obie’s current status or check if there have been any changes, you can:

  • Visit the California Department of Insurance (CDI) website: www.insurance.ca.gov.
  • Use the CDI’s licensee search tool to look up Obie Insurance.
  • Contact Obie directly for the most up-to-date information about their operations in California.

Conclusion

Obie Insurance is not an admitted carrier in California but operates as a surplus lines insurer, providing specialized landlord insurance. While this allows Obie to offer unique coverage options, it also means your policy is not backed by the state guaranty fund. If you’re considering Obie, weigh the benefits of their tailored coverage against the lack of state protection, and consult with a licensed insurance professional to ensure it meets your needs.

Leave a Comment