An insurer that has been granted a certificate of authority to conduct business in a particular state is referred to as what?

An insurer that has been granted a certificate of authority to conduct business in a particular state is referred to as an admitted insurer. This designation indicates that the insurer has received approval from the state's insurance department, meaning it complies with all state regulations and is legally allowed to provide insurance coverage within that jurisdiction.

Admitted insurers are subject to state solvency regulations and consumer protection laws, which helps ensure the financial stability of the insurer and protects policyholders. Additionally, because they are admitted, they may participate in the state's guaranty fund, which provides additional protection for policyholders in the event of the insurer's insolvency.

In contrast, non-admitted insurers do not have a certificate of authority and can only operate in specific circumstances, such as for certain types of coverage where admitted insurers do not offer policies. Foreign insurers are those that are incorporated in one state but operate in another, and surplus lines insurers typically provide coverage that is not available from admitted insurers due to unique risks or higher rates.

Understanding these distinctions is important for navigating the insurance landscape and recognizing the standing and reliability of different types of insurance providers.