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

• A. Admitted insurer
• B. Authorized insurer
• C. Nonadmitted insurer
• D. Foreign insurer

Answer: (B)

When an insurer is licensed by the Louisiana Insurance Commissioner to transact insurance in the state, it is considered authorized to operate there. This status means the company is admitted in Louisiana, meeting regulatory requirements and subject to state oversight. An authorized (admitted) insurer can issue policies in Louisiana, collect premiums, and must file and have rates and forms approved, ensuring consumer protections and solvency standards are met.

The other terms describe different situations: a nonadmitted insurer isn’t licensed to transact standard business in the state (they might be used for surplus lines or special cases), and a foreign insurer is simply an insurer domiciled outside Louisiana (it may be authorized to operate in the state, but its domicile is not Louisiana).