If an insurer meets the state's financial requirements and is approved to transact business in the state, what type is it considered?

When an insurer meets the state's financial requirements and receives approval to conduct business in that state, it is classified as an "admitted" insurer. This designation indicates that the insurer complies with the regulatory standards set forth by the state, which typically involve minimum capital and surplus requirements, regulatory filing of rates and forms, and adherence to consumer protection laws. Being an admitted insurer provides certain advantages, including the ability to offer policies under the state's insurance laws, which may include certain protections for policyholders, such as access to state guaranty funds in the event of company insolvency.

In contrast, an unauthorized insurer operates without such state approval and does not meet the regulatory requirements, while excluded insurers typically refer to those whose risks are not covered under standard insurance policies. A surplus lines insurer provides coverage through non-admitted markets for risks that standard admitted insurers are unable or unwilling to insure, usually because these risks are considered too high. Being an admitted insurer thus signifies a level of stability and regulatory compliance that benefits the policyholders.