What must occur for an insurer to be considered 'admitted' in a state?

An insurer is considered 'admitted' in a state when it has received approval from the state's Commissioner of Insurance. This process involves the insurer demonstrating that it meets the regulatory requirements set forth by the state, which typically includes financial stability, adherence to state laws, and other operational standards. Being admitted allows the insurer to operate legally in that state and sell insurance products to residents.

This status also provides certain benefits for policyholders, such as protection under the state's guaranty fund system, which offers some level of security in the event the insurer becomes insolvent. States regulate admitted insurers closely to ensure consumer protection and maintain the integrity of the insurance market.