A company authorized by the Commissioner to transact insurance business in Louisiana is called a(n)

• A. Foreign insurer
• B. Authorized insurer
• C. Domestic insurer
• D. Self-insurer

Answer: (B)

In Louisiana, a company that has received the Commissioner’s certificate of authority to transact insurance in the state is called an authorized insurer. This designation means the company has met regulatory standards, including financial requirements, filed the necessary forms, and is permitted to issue policies and collect premiums within Louisiana.

Understanding the other terms helps: a domestic insurer is one that is formed under Louisiana law; a foreign insurer is formed in another state but operates in Louisiana; and a self-insurer is a business that opts to self-insure rather than purchase traditional insurance. The key point is that only an authorized insurer has the official permission to transact insurance in the state.