What does it mean for an insurer to be admitted?

An insurer being "admitted" means that it is licensed to operate in a specific state. This indicates that the insurer has met all regulatory requirements laid out by the state's insurance department, which typically includes maintaining adequate financial reserves, adhering to state laws, and undergoing regular audits. Being admitted allows insurers to offer policies directly to consumers and agents in that state, and means that the policyholders are afforded certain protections under state law, such as access to the state's guaranty fund in the event of a company insolvency. The importance of being admitted is significant as it reinforces public confidence in the regulatory oversight of the insurance industry within the state.