Chapter 2 INSURER CLASSIFICATION

authorized insurer

An insurer that is admitted or authorized to transact insurance business in a particular state is referred to as an ** in that state. Also known as admitted insurers, an ** company is issued a certificate of authority. Generally, an unauthorized (non-admitted) insurance company is not permitted nor allowed to conduct insurance operations in a particular State. In some cases, a non-admitted insurer may still offer surplus lines insurance without a certificate of authority if no ** in the market is available or willing to take the risk. The surplus insurance market is heavily regulated, requires additional licensing, and typically does not offer the consumer the same protections as the primary insurance market.

domestic

Insurer Classification According To Domicile A ** insurer has its principal or home office in the state where it is authorized. In other words, an insurance company authorized (admitted to transact insurance business) in the state where it is chartered or incorporated is classified as a ** insurer only in that state. A foreign insurer is authorized in one state, but its charter or principal office is in another State. An alien insurer is an insurer authorized in any state within the U.S., but its principal office is located outside this country. For instance, Nationwide Insurance Company of Columbus, Ohio, operates as a domestic insurer in the State of Ohio. Nationwide Insurance Company is also licensed or authorized in the State of Illinois. Therefore, it operates throughout the State of Illinois as a foreign insurer. Nippon Life of Tokyo, Japan, or Sun Financial Services of Toronto, Canada, are examples of alien insurers.

foreign

Insurer Classification According To Domicile A domestic insurer has its principal or home office in the state where it is authorized. In other words, an insurance company authorized (admitted to transact insurance business) in the state where it is chartered or incorporated is classified as a domestic insurer only in that state. A ** insurer is authorized in one state, but its charter or principal office is in another State. An alien insurer is an insurer authorized in any state within the U.S., but its principal office is located outside this country. For instance, Nationwide Insurance Company of Columbus, Ohio, operates as a domestic insurer in the State of Ohio. Nationwide Insurance Company is also licensed or authorized in the State of Illinois. Therefore, it operates throughout the State of Illinois as a ** insurer. Nippon Life of Tokyo, Japan, or Sun Financial Services of Toronto, Canada, are examples of alien insurers.

Certificate Authority (CA)

An insurer that is admitted or authorized to transact insurance business in a particular state is referred to as an authorized insurer in that state. Also known as admitted insurers, an authorized company is issued a **. Generally, an unauthorized (non-admitted) insurance company is not permitted nor allowed to conduct insurance operations in a particular State. In some cases, a non-admitted insurer may still offer surplus lines insurance without a ** if no authorized insurer in the market is available or willing to take the risk. The surplus insurance market is heavily regulated, requires additional licensing, and typically does not offer the consumer the same protections as the primary insurance market.

unauthorized (non-admitted) insurance company

An insurer that is admitted or authorized to transact insurance business in a particular state is referred to as an authorized insurer in that state. Also known as admitted insurers, an authorized company is issued a certificate of authority. Generally, an ** is not permitted nor allowed to conduct insurance operations in a particular State. In some cases, a ** may still offer surplus lines insurance without a certificate of authority if no authorized insurer in the market is available or willing to take the risk. The surplus insurance market is heavily regulated, requires additional licensing, and typically does not offer the consumer the same protections as the primary insurance market.

risk

An insurer that is admitted or authorized to transact insurance business in a particular state is referred to as an authorized insurer in that state. Also known as admitted insurers, an authorized company is issued a certificate of authority. Generally, an unauthorized (non-admitted) insurance company is not permitted nor allowed to conduct insurance operations in a particular State. In some cases, a non-admitted insurer may still offer surplus lines insurance without a certificate of authority if no authorized insurer in the market is available or willing to take the **. The surplus insurance market is heavily regulated, requires additional licensing, and typically does not offer the consumer the same protections as the primary insurance market.

primary insurance market

An insurer that is admitted or authorized to transact insurance business in a particular state is referred to as an authorized insurer in that state. Also known as admitted insurers, an authorized company is issued a certificate of authority. Generally, an unauthorized (non-admitted) insurance company is not permitted nor allowed to conduct insurance operations in a particular State. In some cases, a non-admitted insurer may still offer surplus lines insurance without a certificate of authority if no authorized insurer in the market is available or willing to take the risk. The surplus insurance market is heavily regulated, requires additional licensing, and typically does not offer the consumer the same protections as the **.

alien

Insurer Classification According To Domicile A domestic insurer has its principal or home office in the state where it is authorized. In other words, an insurance company authorized (admitted to transact insurance business) in the state where it is chartered or incorporated is classified as a domestic insurer only in that state. A foreign insurer is authorized in one state, but its charter or principal office is in another State. An ** insurer is an insurer authorized in any state within the U.S., but its principal office is located outside this country. For instance, Nationwide Insurance Company of Columbus, Ohio, operates as a domestic insurer in the State of Ohio. Nationwide Insurance Company is also licensed or authorized in the State of Illinois. Therefore, it operates throughout the State of Illinois as a foreign insurer. Nippon Life of Tokyo, Japan, or Sun Financial Services of Toronto, Canada, are examples of ** insurers.

Nationwide Insurance Company of Columbus

Insurer Classification According To Domicile A domestic insurer has its principal or home office in the state where it is authorized. In other words, an insurance company authorized (admitted to transact insurance business) in the state where it is chartered or incorporated is classified as a domestic insurer only in that state. A foreign insurer is authorized in one state, but its charter or principal office is in another State. An alien insurer is an insurer authorized in any state within the U.S., but its principal office is located outside this country. For instance, **, Ohio, operates as a domestic insurer in the State of Ohio. Nationwide Insurance Company is also licensed or authorized in the State of Illinois. Therefore, it operates throughout the State of Illinois as a foreign insurer. Nippon Life of Tokyo, Japan, or Sun Financial Services of Toronto, Canada, are examples of alien insurers.

Nationwide Insurance Company

Insurer Classification According To Domicile A domestic insurer has its principal or home office in the state where it is authorized. In other words, an insurance company authorized (admitted to transact insurance business) in the state where it is chartered or incorporated is classified as a domestic insurer only in that state. A foreign insurer is authorized in one state, but its charter or principal office is in another State. An alien insurer is an insurer authorized in any state within the U.S., but its principal office is located outside this country. For instance, Nationwide Insurance Company of Columbus, Ohio, operates as a domestic insurer in the State of Ohio. ** is also licensed or authorized in the State of Illinois. Therefore, it operates throughout the State of Illinois as a foreign insurer. Nippon Life of Tokyo, Japan, or Sun Financial Services of Toronto, Canada, are examples of alien insurers.

Nippon Life of Tokyo, Japan

Insurer Classification According To Domicile A domestic insurer has its principal or home office in the state where it is authorized. In other words, an insurance company authorized (admitted to transact insurance business) in the state where it is chartered or incorporated is classified as a domestic insurer only in that state. A foreign insurer is authorized in one state, but its charter or principal office is in another State. An alien insurer is an insurer authorized in any state within the U.S., but its principal office is located outside this country. For instance, Nationwide Insurance Company of Columbus, Ohio, operates as a domestic insurer in the State of Ohio. Nationwide Insurance Company is also licensed or authorized in the State of Illinois. Therefore, it operates throughout the State of Illinois as a foreign insurer. **, or Sun Financial Services of Toronto, Canada, are examples of alien insurers.

Sun Financial Services of Toronto, Canada

Insurer Classification According To Domicile A domestic insurer has its principal or home office in the state where it is authorized. In other words, an insurance company authorized (admitted to transact insurance business) in the state where it is chartered or incorporated is classified as a domestic insurer only in that state. A foreign insurer is authorized in one state, but its charter or principal office is in another State. An alien insurer is an insurer authorized in any state within the U.S., but its principal office is located outside this country. For instance, Nationwide Insurance Company of Columbus, Ohio, operates as a domestic insurer in the State of Ohio. Nationwide Insurance Company is also licensed or authorized in the State of Illinois. Therefore, it operates throughout the State of Illinois as a foreign insurer. Nippon Life of Tokyo, Japan, or **, are examples of alien insurers.