YOU ASK:
What is the definition of Non-admitted Assets?
WE ANSWER:
Non-admitted Assets are the assets of the insurance company that are not allowed to be listed in the balance sheet of the insurance company. Or, they may be included in the balance sheet, but not included when performance measures like solvency ratios are being computed.
Non-admitted assets include past-due accounts receivable, fixtures and furniture, as well as the debt balances of the insurance company's agents. These are assets that are not easily liquidated in the event that the insurance company faces a large amount of claims. State law prohibits the listing of such assets as part of indicators that the insurance company is solvent enough to pay for its claims, particularly if a major tragedy happens.
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