An admitted insurance carrier is an insurance company that has submitted its insurance rates and specified financial information to the California Department of Insurance for approval. Once approved, the carrier is required to offer those rates to all customers equally. The Department of Insurance also reviews the carrier's investments and reserves to make sure they are adequate. Admitted carriers are backed by the California Insurance Guarantee Association (CIGA). Should the carrier file for bankruptcy, the CIGA covers claims up to the insured's policy limit or $500,000, whichever is less.

Non-admitted or Surplus Lines Insurance carriers are licensed to do business in another state or nation. They are required to go through an approval process with the California Department of Insurance to make certain they are financially sound. These companies are not required to have their rates approved by CIGA and can price their insurance policies to meet any perceived risk. This allows them to insure high-risk clients that might otherwise be uninsurable by many admitted carriers.

Surplus lines insurance companies include Lloyds of London, American International Group (AIG), Nationwide Group, Chubb INA, Liberty Mutual, and Berkshire Hathaway Insurance Group.

Some homeowner association governing documents require that boards obtain insurance only from admitted carriers.