Question

Insurers that are licensed to do business in a state, whether as domestic, foreign, or alien insurers are collectively referred to as which one of the following?

Select one:

a. Domestic insurers

b. Authorized insurers

c. Admitted insurers

d. Surplus lines insurers

Answer 1

Option "C" is correct, i.e., Admitted Insurer is an insurer to which a state insurance department has granted a license to do business within that state.

Domestic Insurers are the insurers doing business in the jurisdiction in which it is incorporated.

An authorized insurer is an individual or a company with approval from the responsible authority, as per the state, to conduct the business of issuing insurance coverage in a given state.

Surplus lines insurers fill the need for coverage in the marketplace by insuring those risks that are declined by the standard underwriting and pricing processes of admitted insurance carriers.