What must an insurer obtain in order to transact insurance within a given state?
Asked by: Eda Ritchie | Last update: October 7, 2025Score: 4.1/5 (25 votes)
What must an insurer obtain to transact insurance in a given state?
Final answer: The insurer needs to obtain a certificate of authority to transact insurance legally in a state. This certificate is issued by the state's Department of Insurance, ensuring compliance with the state's insurance standards.
What documents must an insurer receive in order to transact insurance in this state?
Certificate of Authority [699 - 728] ( Article 3 enacted by Stats. 1935, Ch. 145. )
What gives an insurer the authority to operate within this state?
What gives an insurer the authority to operate within this state? A Certificate of Authority from the Department or Division of Insurance grants an insurer the right to operate within a state.
Which of the following is required for an insurer to conduct business in this state?
The license required for an insurer to conduct business in the state is referred to as a certificate of authority. This legal document signifies that an insurer is authorized by a governmental body to operate within a specific jurisdiction.
Transacting Insurance Definition on the Insurance Exam
When an insurer meets the state's financial requirements and is approved to transact business in the state it is considered to be?
Insurers who meet the state's financial requirements and are approved to transact business in the state are considered authorized or admitted into the state as a legal insurer.
How is insurance regulated by states?
Each state government has a department or other entity charged with licensing and regulating insurance companies and those individuals and companies selling insurance products. States regulate the solvency of the companies and the content of insurance products as well as the market conduct of companies.
How can an agent determine if an insurer is authorized to transact insurance in the state of Florida?
The Office of Financial Regulation (OFR) oversees securities regulation. To check licensing/registration status you can call the OFR at 1-850-487-9687 or use their online search. View the list of unauthorized entities that have had action taken against them in the state of Florida.
What is an insurer required to have in order to conduct business in the state of New York?
In order to transact an insurance business in this state, any person firm, association, corporation or joint-stock company must have a license issued and in force. The requirements for licensing are specified in N.Y. Ins.
What is rebating in insurance?
Rebating refers to returning a portion of the premium or the agent's/broker's commission on the premium to the insured or other inducements to place business with a specific insurer.
Which of the following must an insurer obtain in order to transact?
To operate in California, all insurers must gain admittance by obtaining a Certificate of Authority.
When must an insurer provide and insured with claim forms within?
The claim forms provision outlines the insurer's responsibility to provide the claimant with the specific forms the insurer requires within 15 days after receiving the insured's notice of claim.
Is the authority to transact insurance under an appointment becomes effective as of the day?
The authority to transact insurance given to a licensee by an insurer, property broker-agent, casualty broker-agent, personal lines broker-agent, or limited lines automobile insurance agent, as the case may be, by appointment shall be effective as of the date the notice of appointment is signed.
What is a requirement if you want to transfer your insurance license to the state of Florida from another state?
Become a resident of Florida. Has held a valid resident license with the equivalent line of authority for one (1) continuous year prior to applying for a license in Florida. Submit the application for the license and pay the appropriate fees within 90 days of becoming a resident of Florida. [Apply using MyProfile]
What is an insurer seeking a certificate of authority normally required to submit to the insurance department?
Is there anything else needed to file for a Certificate of Authority? Most states require a certificate of good standing from the home state to accompany the application. Other requirements may include articles of incorporation and the signature of the registered agent.
What is an example of rebating?
An example of rebating is when the prospective insurance buyer receives a refund of all or part of the commission for the insurance sale.
Which is required before an insurance producer can act as a representative of an insurer?
An insurance producer shall not act as an agent of an insurer unless the insurance producer becomes an appointed agent of that insurer. An insurance producer who is not acting as an agent of an insurer is not required to become appointed.
What must an insurance agency location or branch have in order to operate legally in Florida?
Every insurance agency transacting insurance business in Florida must be licensed, if it is not already. Only specified persons owning or managing an insurance agency may sign an agency license application.
Is any insurer authorized to transact business in NC may appoint as its agent?
(b) Any insurer authorized to transact business in this State may appoint as its agent any individual who holds a valid insurance producer license issued by the Commissioner.
What must an insurer have to be an authorized insurer?
An authorized insurer is an individual or company that meets a state insurance department's standard and is authorized by the responsible authority to do business in the given state, also known as an admitted insurer. The authorities oversee all features of an authorized or admitted insurer's companies' operations.
Which of the following is not required on every insurance application sold in Florida?
Final answer: The agent's license number is not required on every insurance application in Florida.
Which of the following is a requirement for obtaining a Texas insurance agents?
you must be at least 18 years old. you must be a resident of Texas. you must pass the state licensure exam for the insurance lines you plan on specializing in. you must not have committed any offense that could be grounds for denial, suspension, or revocation of your license.
What gives an insurer the right to operate within this state?
What gives an insurer the authority to operate within this state? A Certificate of Authority from the Department or Division of Insurance grants an insurer the right to operate within a state.
How does insurance work across states?
Each State's health insurance is separate and even if a carrier (say Anthem) operates in both States, the plans, regulations, and options are different. Some big carriers like Anthem may have transfer options but the best rates and options require re-applying in the new State.
Which of the following is required for an insurer to conduct business in this state?
The license required for an insurer to conduct business in the state is referred to as a certificate of authority. This legal document signifies that an insurer is authorized by a governmental body to operate within a specific jurisdiction.