What must an insurance company hold to lawfully write insurance business in a state?

To lawfully write insurance business in a state, an insurance company must obtain a certificate of authority. This document is issued by the state’s insurance department and signifies that the insurer has met the necessary regulatory requirements to operate within that specific state. The certificate of authority serves as proof that the insurance company is authorized to provide various types of insurance coverage and protects consumers by ensuring that the insurer adheres to state laws and regulations.

In contrast, while federal licenses and business registrations are important for general business operations, they do not specifically pertain to the insurance industry. A regional permit does not exist in the context of insurance regulations and therefore is not applicable either. The requirement for a certificate of authority is unique to the insurance business, ensuring compliance with state laws and protecting policyholders.