Authorized Insurer
What Does Authorized Insurer Mean?
An authorized insurer is an individual or company approved by the relevant authority, as determined by the state, to conduct the business of issuing insurance coverage within that state. Since different states have varying regulatory guidelines, the right to sell insurance is granted by either the insurance commissioner or another related state agent. Regardless of who grants the authority, a valid certificate of authority must be provided.
Insuranceopedia Explains Authorized Insurer
The insurance industry plays a crucial role in any state, helping a country cope with or recover from disasters, prevent business failures, and mitigate the impact of other catastrophic events. However, fraudsters within this sector can inflict significant harm and losses. This underscores the need for state regulation through laws, regulations, and the licensing of only qualified and honest entities.
Anyone or any entity can engage in the insurance business, provided they meet the required terms and conditions. As such, an authorized insurer can be an individual, a partnership, an association, a cooperative society, or other legal entities. There are also multinational insurance companies that operate across different nations and states. In such cases, the company must be an authorized insurer in each of the states and countries where it operates.
