Registered Insurer

What Does Registered Insurer Mean?

A registered insurer is an insurance company that has met government standards to operate legally within a state or region. To attain this status, insurance companies must obtain licenses from the relevant government authorities. This process ensures that the government can verify their legitimacy and credibility.

Insuranceopedia Explains Registered Insurer

Although many insurance companies are large and well-known, fake and fraudulent companies can still emerge and capture a share of the market. These illegitimate companies often sell fake policies that provide no real benefits. In other words, financial crimes can occur in the insurance industry. To combat this, state governments require insurers to go through a licensing and registration process. This ensures not only the legitimacy of these companies but also verifies that they have the financial capacity to pay out the benefits they promise.