Can an insurer operate in a different state without a certificate of authority?

An insurer is required to hold a certificate of authority to operate in a different state. This certificate serves as legal recognition granted by a state's insurance department, indicating that the insurer has met specific regulatory standards and is authorized to conduct insurance business within that state. Without this certificate, insurers do not have the right to provide insurance services, issue policies, or settle claims in that jurisdiction.

Holding a certificate of authority ensures that the insurer is subject to the regulatory framework of the state, which protects policyholders through oversight and regulation of insurance practices. This requirement applies universally regardless of whether the insurer is based in another state or the nature of its operations, making it a key aspect of compliance for insurers looking to operate beyond their home state.