What is the term for an insurance company that is licensed to operate in a particular state?

The term for an insurance company that is licensed to operate in a particular state is "admitted." An admitted insurer has met the regulatory requirements set forth by the state's insurance department, including financial solvency, policy form approval, and adherence to state rules and regulations. Being admitted allows these insurers to sell their products legally within that state and provides consumers certain protections, such as the ability to access the state's guarantee fund in the event of the insurer's insolvency.

In contrast, an unauthorized or non-admitted insurer has not undergone the licensing process in that state, which may prevent them from legally selling insurance there. Excluded does not pertain to the status of an insurer but rather refers to specific situations or coverages that are not included in an insurance policy. Understanding these distinctions is vital for functioning within the insurance industry and ensuring compliance with state laws.