Which type of insurer has not applied for a Certificate of Authority?

The correct choice identifies an unauthorized insurer as one that has not applied for a Certificate of Authority. In the insurance industry, a Certificate of Authority is a legal document issued by a state’s insurance department, granting permission to an insurer to operate within that state. If an insurer has not applied for or obtained this certificate, it is classified as unauthorized.

Unauthorized insurers typically do not have the regulatory approval necessary to sell insurance products in the jurisdiction and may not be subject to the same oversight and financial solvency requirements as authorized insurers. This distinction serves to protect consumers, ensuring that they engage with companies that adhere to state regulations and standards.

In contrast, authorized insurers have applied for and received the necessary certification, allowing them to conduct business legally in the state. Intermediary insurers do not exist as a standard classification within the insurance regulatory framework, and registered insurers might refer to those that have notified a specific governmental authority of their operations without necessarily securing the broader Certificate of Authority. Therefore, understanding these classifications helps to clarify the regulatory landscape of insurance operations.