What documentation is required from an insurer before issuing a license?

The requirement for evidence of financial stability and integrity from an insurer is crucial before issuing a license because it ensures the insurer has the necessary resources to meet its obligations to policyholders. This documentation typically includes financial statements, credit ratings, and other indicators that demonstrate the company's ability to pay claims and manage its operations effectively.

Insurers must demonstrate that they are financially sound to instill confidence in both consumers and regulators. This safeguard protects the public interest by ensuring that licensed insurers can fulfill their contractual obligations, thus maintaining the stability of the insurance market as a whole. Other factors like community service, customer satisfaction, or local partnerships, while beneficial, do not directly assess the insurer's ability to operate effectively and responsibly in financial terms.