What must a non-admitted insurer obtain to conduct business in South Carolina?

To conduct business in South Carolina, a non-admitted insurer must obtain a certificate of authority to operate. This certificate serves as official recognition that the insurer is allowed to offer insurance products and services within the state. Non-admitted insurers typically operate in specialized or high-risk markets, providing coverage that may not be available through admitted insurers.

A certificate of authority is essential because it ensures that the insurer meets certain regulatory standards, thus protecting policyholders by maintaining oversight of the company's financial stability and business practices. While non-admitted insurers are not licensed in the same manner as admitted insurers, they do need to have this certificate to ensure they are complying with state regulations.

The other options relate to different aspects of business regulation. An insurance license is specifically for admitted insurers, approval from the state department of insurance is a general requirement for many insurance companies but does not specifically pertain to non-admitted insurers, and registration as a foreign entity is required for out-of-state companies operating within South Carolina but does not specifically address the unique standing of non-admitted insurers.