Which term refers to an insurance company that has received a Certificate of Authority from the Department of Insurance to transact insurance in the state?

The term that describes an insurance company which has received a Certificate of Authority from the Department of Insurance to conduct insurance business within a state is "Admitted Insurer." These insurers are licensed and regulated by the state, meaning they have met certain requirements and are authorized to operate in that jurisdiction. This authority provides assurance to policyholders that the insurer adheres to specific standards, including financial stability and compliance with state laws.

In contrast, a non-admitted insurer does not hold a Certificate of Authority and may operate without certain regulatory oversight; a surplus lines insurer is a type of non-admitted insurer that provides coverage for risks that standard insurers are unwilling or unable to underwrite; and a preferred provider refers to a network of healthcare providers that have agreed to offer services at reduced rates to policyholders, rather than a designation of an insurance company’s licensing status. Understanding these distinctions is crucial for navigating the insurance landscape effectively.