To whom may a certificate of authority be issued?

A certificate of authority is a formal approval granted by a regulatory authority that allows an insurer to conduct insurance business in a specific jurisdiction, such as the state of Ohio. When an insurer receives this certificate, it indicates that the insurer has met all necessary legal requirements to operate within the state, including demonstrating financial stability, compliance with state laws, and fulfilling any foundational regulatory obligations.

The issuance of a certificate of authority is typically specific to insurers, which may include companies that provide various types of insurance coverage. This ensures that only authorized and properly vetted businesses operate in the market, protecting consumers from unregulated or fraudulent entities.

In contrast, while individual agents, brokerage firms, or other individuals can be involved in the insurance industry, they generally do not receive certificates of authority themselves. Agents may need a license to sell insurance, brokers may operate under specific regulations, but the authority to operate as an insurer rests solely with the organizations that are approved through the certificate of authority process. Therefore, the correct choice reflects the specific nature of the certificate of authority being designed for insurers authorized to conduct business rather than agents or brokers.