What is an insurer considered when they are licensed in a state?

An insurer is considered "admitted" when they are licensed to operate in a particular state. This designation confirms that the insurer has met the regulatory requirements set by the state’s insurance department. By obtaining an admission license, the insurer is authorized to offer insurance products and services to consumers within that state while adhering to the reporting requirements, financial standards, and consumer protection laws stipulated by state law.

Being admitted provides several advantages, including the assurance for policyholders that the insurer meets state financial stability and solvency standards. It also often grants the insurer the ability to market its policies more freely and ensures that policyholders have access to state-backed protections, such as a state guaranty fund that can cover claims if the insurer fails.

In contrast, an unlicensed insurer has not received this necessary approval, while an unauthorized insurer operates without such permission and is unable to conduct business legally in the state. The term "temporary" typically does not apply in this context as it suggests a short-lived status rather than a licensing designation.