Georgia Life and Health Insurance Practice Exam

An insurance company authorized to transact business in a particular state is referred to as an "authorized insurer." This designation means that the insurer has met the regulatory requirements set by the state’s insurance department, which typically involves obtaining a license and complying with state laws and regulations. Authorized insurers are allowed to operate fully within that state, providing coverage and offering policies to residents.

This status distinguishes authorized insurers from other types of insurers, such as non-admitted insurers, which do not have a license to operate in the state and can only offer certain types of coverage under specific circumstances. In contrast, the other terms such as "exempt insurer" and "registered insurer," do not accurately define the status of an insurer that is formally permitted to transact business in a state. These terms may refer to different regulatory categories or processes but do not represent the standard terminology for licensed insurance companies.