nonadmitted asset
- A type of asset that, due to legal constraints, is not considered in assessing an insurance company's fiscal health as it can't be expediently turned into cash without suffering a decrease in value
- The expensive artwork owned by the insurance company is considered a nonadmitted asset.
- State laws require that nonadmitted assets are not included in an insurance company's compliance statement.
- It is important to differentiate between admitted and nonadmitted assets when interpreting an insurance company's financial statement.
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