What document is required for an insurance company to transact insurance?

To legally transact insurance, an insurance company must possess a Certificate of Authority. This document is issued by the state department of insurance and serves as formal recognition that the company is authorized to operate within the state and provide specific types of insurance coverage. The Certificate of Authority ensures that the insurer meets all regulatory requirements and standards set by the state, thereby protecting consumers and maintaining the integrity of the insurance market.

While a policy document outlines the specifics of the insurance coverage provided, and a license is generally associated with individual agents or brokers rather than the company itself, the Certificate of Authority is the crucial document that allows the entire company to conduct its business legally. An operating permit typically refers to a broader business operation and does not specifically pertain to the insurance industry's regulatory framework. Thus, the Certificate of Authority stands as the key requirement for an insurance company to engage in the transaction of insurance.