Is Colony Insurance Company An Admitted Carrier?

What does it mean to be an admitted carrier?

Admitted underwriters can underwrite policies issued by other insurers. And, if they sell a policy with limits exceeding the limits of another carrier, they can satisfy their statutory minimum contract requirements by writing at least $100,000 of each contract. It may seem like an advantage to be able to write policies for insurers who are not accredited with the state Insurance Department. However, the legal standards for an insurer’s admission are quite stringent, and any insurer found to be ineligible for this accreditation is subject to substantial penalties. An insurer must hold a license from its state Insurance Department to sell insurance products to the general public, and for most states, this license is usually limited to the term of the insurer’s main business (5 to 10 years).

Why do I need to know if Colony Insurance Company is an admitted carrier?

An admitted carrier is a state-licensed insurance company that is regulated under the state’s insurance laws. It is vital that you know who and what kind of insurance you’re getting. Without that information you can’t get the proper coverage you need to protect your business.

Do I need to get a list of all the carriers that are in my state?

Each state sets its own requirements for insurance, so the answers to these questions will vary from state to state. Make sure that you discuss this issue with the insurance agent that you hire to write the policies of the commercial line for your business.

How can I find out if Colony Insurance Company is an admitted carrier?

A business must be a general liability or workers compensation insurer registered with the Department of Labor before submitting a certificate of an insurance application to the FDIC. The first step is to call a Claims and Compliance Agent at (877) 242-9311. Next, complete and submit a Certificate of Insurance Application.

After I’ve submitted my Certificate of Insurance Application, what should I do next?

If the certificate confirms your policy will be renewed, you can pay the premium to the FDIC and Colony Specialty for the next 12 months and keep the certificate on file. If the FDIC denies the policy renewal, contact the Claims and Compliance Department and set up a renewal hearing appointment.

Conclusion

During the last 52 weeks, Colony Insurance Company’s share price has declined by a staggering 44%. While this is a clear case of negative total returns, the drop might have been justified, given the historical trend. Colony Specialty was hit hard by the Great Recession and still, its shareholders have not been rewarded for the hard work they have put into the company. Colony Specialty’s shares are currently trading at a forward P/E of 10.7x, and based on this valuation, I believe that it is a good time to take a closer look at Colony Insurance. The company currently pays a quarterly dividend of $0.20 per share, which gives investors a dividend yield of 2.9%.

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