In Louisiana, what term describes a company authorized to transact insurance by the state regulator?

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

Answer: (B)

In Louisiana, a company that has earned a certificate of authority from the state regulator to transact insurance is described as an authorized insurer. This status means the insurer has met the state's requirements—financial strength, filed rates and forms, and ongoing regulatory oversight—and is permitted to sell policies within the state. Being authorized also ties the insurer to state protections like the guaranty fund and state-mpecified claims processes.

Nonadmitted insurers are not authorized to transact insurance in Louisiana, typically used for surplus lines or risks not available from admitted carriers. Foreign insurers are those organized outside Louisiana (in another state or country) and may operate in Louisiana only if they have the necessary authorization.