What is the status of an insurance company that is licensed to conduct business within a state?

An insurance company that is licensed to conduct business within a state is considered "admitted." This terminology indicates that the company has met all regulatory requirements set by the state's insurance department, which includes maintaining specific financial standards, filing necessary paperwork, and complying with state laws. Being admitted gives the insurance company the legal authority to write policies in that state, which instills a level of confidence for consumers, as it signifies regulatory oversight and adherence to local laws.

In contrast, companies that are unauthorized have not received the necessary approval to operate in the state, while suspended companies have faced disciplinary action that temporarily halts their ability to conduct business. Non-compliant status indicates failure to meet regulatory obligations but does not specifically relate to licensing like being admitted does. Thus, being classified as "admitted" denotes both compliance with state regulations and the ability to conduct business legally.