What is the definition of an admitted insurer?

An admitted insurer refers to an insurance company that has received authorization from a state regulatory authority to operate within that specific state. This authorization means that the insurer has met all necessary legal obligations, including compliance with state insurance laws and regulations, and is subject to oversight by the state’s insurance department.

Because admitted insurers are fully licensed and regulated, they are able to offer policies that are backed by the state’s guarantee fund, providing a level of security for policyholders. This can include aspects such as protection in the event of the insurer becoming insolvent, as state guaranty funds are designed to provide reimbursement in such circumstances.

The other options represent different types of insurers that do not have the same level of state approval or regulatory compliance and thus do not fit the definition of admitted insurers.