What is an "admitted insurer" in most states?

An admitted insurer refers to an insurance company that has received a certificate of authority from the state to operate within that jurisdiction. This designation signifies that the insurer is compliant with state regulations, including solvency requirements, and is authorized to offer various insurance products to consumers. Being admitted also means that the insurer is subject to state oversight, which helps ensure consumer protection and fair practices.

In contrast, the other choices address different types of insurers. For example, an insurance company that is operating without authorization, such as through options that mention being unlicensed or foreign without authorization, does not have the legal status or consumer protections associated with being an admitted insurer. Insurers that lack this official status may not be subject to the same standards and regulations and could pose risks to consumers seeking claims or coverage. Therefore, the definition of an admitted insurer is crucial for understanding which companies consumers can rely on for legitimate insurance transactions.