Which of the following is NOT authorized to transact insurance in a state?

The correct response is that a non-admitted insurer is not authorized to transact insurance in a state. Non-admitted insurers are typically those that have not received the necessary approval or licensing from the state's insurance department. This means they are not recognized as authorized providers within that state and are generally not allowed to write insurance policies there.

In contrast, an admitted insurer is one that has been granted a license by the state to operate and offer insurance products, ensuring that they comply with state regulations and contribute to the state's guarantee funds. A licensed insurer holds the proper credentials to legally conduct business and provide insurance coverage in that jurisdiction. Fraternal insurers, while distinct in their structure (often serving specific membership communities), are also typically licensed to operate within the states where they provide services.

The differences lie primarily in the regulatory environment and the credentials each type of insurer has in relation to the state insurance laws.