If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?

• A. Authorized or Admitted
• B. Domestic
• C. Foreign
• D. Non-Admitted

Answer: (A)

Being authorized or admitted means the insurer has met the state's financial requirements and received a certificate of authority to transact insurance in that state. This status signals regulatory approval to issue policies, collect premiums, and pay claims within the state, and it subjects the company to state oversight, including solvency requirements and rate/form filing rules. Insurers that are not admitted do not have this licensure and typically operate under surplus lines or other exceptions. The terms domestic, foreign, and alien describe where the insurer is incorporated relative to the state, not whether it is authorized to operate there.