What term describes insurance providers who do not have state authorization for operations?

The term that describes insurance providers who do not have state authorization for operations is "unauthorized insurers." These entities operate without formal approval from the state regulatory authorities, meaning they are not licensed to issue policies or conduct business in that state. Unauthorized insurers typically provide coverage through surplus lines, which cater to risks that standard carriers may not be willing to underwrite. This can include specialty or high-risk insurance products.

In contrast, authorized insurers have received the necessary licensure from the state to operate legally within its borders, ensuring compliance with specific regulations and consumer protections. Domestic insurers are those that are incorporated and operate within the same state, while foreign insurers are those that are incorporated in one state but operate in other states. This distinction highlights the regulatory environment and the requirement for insurers to be licensed to protect consumers and maintain industry standards.