nonstandard insurer

A nonstandard insurer is an insurance company that writes coverage for applicants or risks that do not meet the underwriting requirements of the standard insurance market. This can be because they present higher-than-average, unusual, or difficult-to-place exposures. Examples include insureds with adverse loss histories, poor driving records, properties in high-risk areas, specialized operations, or other characteristics that standard insurers are unwilling or unable to insure. Coverage typically is written with higher premiums, more restrictive terms, lower limits, or specialized policy forms, and may be provided through nonadmitted, excess and surplus lines, or other specialty markets.