What does Nonadmitted Balance mean? Read on to discover the definition & meaning of the term Nonadmitted Balance - to help you better understand the language used in insurance policies.
Reinsured liabilities on an insurer's balance sheet (loss reserves and unearned premium reserves) for which no credit is given in the ceding company's statutory statement. This creates a reduction in surplus, unless the reinsurer provides acceptable collateral in the amount of the unauthorized balance.
We hope the you have a better understanding of the meaning of Nonadmitted Balance.