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The state protects you when you acquire insurance from an admitted company. Admitted companies are companies which usually licensed in State of California. They contribute money to the California Insurance Guarantee Associate (C.I.G.A.) The state sets aside this money to pay claims if it turns out an admitted company goes broke. Non-admitted companies do not contribute on the C.I.G.A. finance. If a non-admitted company goes broke, there is no guarantee your claim seem paid. However, non-admitted companies are not all bad. Great thing regarding a company is A.M. Best rating, however, you should be sure that you’re asking for trouble popular insurance in any non-admitted company with an awful A.M. Best rating.