An Admitted Insurer is one that

An Admitted Insurer is one that

• A. Operates in all states without authorization
• B. Is authorized and has a Certificate of Authority to do business in a state
• C. Only sells through brokers
• D. Has national accreditation but no state approval

Answer: (B)

Being admitted means the insurer is authorized by a state's department of insurance to transact insurance in that state and holds a Certificate of Authority. This status shows the company meets regulatory requirements, files approved rates and policy forms, and is subject to state oversight. It also provides policyholders with state protections, including potential access to a guaranty fund if the insurer fails. The option that describes being authorized and possessing a Certificate of Authority to do business in a state directly captures this definition. The other statements describe scenarios that would not confer admitted status, such as operating without authorization, selling only through brokers, or having national accreditation with no state approval.

Being admitted means the insurer is authorized by a state's department of insurance to transact insurance in that state and holds a Certificate of Authority. This status shows the company meets regulatory requirements, files approved rates and policy forms, and is subject to state oversight. It also provides policyholders with state protections, including potential access to a guaranty fund if the insurer fails. The option that describes being authorized and possessing a Certificate of Authority to do business in a state directly captures this definition. The other statements describe scenarios that would not confer admitted status, such as operating without authorization, selling only through brokers, or having national accreditation with no state approval.