Simple English definitions for legal terms
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A nonadmitted asset is an item that is owned and has value but cannot be included in evaluating the financial condition of an insurance company by law. In contrast, an admitted asset is an asset that can be included in evaluating the financial condition of an insurance company.
Examples of nonadmitted assets include:
These examples illustrate that nonadmitted assets are assets that are not considered reliable or liquid enough to be included in an insurance company's financial evaluation.