Unauthorized Insurer

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Unauthorized Insurer

An insurance company that has not received permission to do business in one's state. For example, an insurance company only authorized to operate in Texas is an unauthorized insurer in Oklahoma. It is illegal for an unauthorized insurer to do business.
References in periodicals archive ?
What if the agency is placing coverage with unauthorized insurers? Generally, this will require a "surplus lines" broker license to be held by the insurance agency as well, which brings up an additional host of diligence considerations.
ELANY plays a key role in protecting consumers, facilitating the smooth operation of the excess line market in New York, ensuring that unauthorized insurers writing excess line business in New York are financially strong, and advocating with both policymakers and regulators to continuously improve the ability of the excess line marketplace to meet the emerging needs of consumers, brokers and insurers.
* The placement of non-admitted insurance and reinsurance by unauthorized insurers and reinsurers is not permitted in the Paraguayan insurance industry.
states allow unauthorized insurers to sell within the state certain kinds of insurance to "industrial insureds." The industrial insured exception permits unauthorized insurers to sell insurance to large companies that generally have a specified number of employees; use a risk manager or broker to purchase their insurance; and pay at least $25,000 to $50,000 per year for all of their insurance coverage.
The purpose of this bill is to authorize the Insurance Commissioner to apply the same enforcement provisions to unlicensed professional employer organizations (PEOs) as are applicable to unauthorized insurers and to allow the fraud unit to investigate PEOs.
"Unauthorized Insurance Entities: Knowing the Difference" is a two-hour course designed to better educate students regarding the differences between unauthorized insurers and illegal insurance entities.
Moreover, insureds do not receive guaranty fund protection on policies issued by such unauthorized insurers.
Procurement tax rates are often higher than premium tax rates, to discourage insure& from securing insurance coverage from unauthorized insurers.
However, risks not covered by local insurers can be insured by unauthorized insurers.
Certain insurance companies were fined for issuing special risk insurance policies without the authority to write in the free trade zone while agents were fined for facilitated unauthorized insurers in doing an insurance business in New York by soliciting, negotiating and/or delivery annuity contracts in New York.
The requirement that unauthorized insurers provide funds in trust or other collateral equal to 100% of their gross actuarially estimated liabilities to U.S.
Unlicensed, unauthorized insurers include not only traditional insurers that have neither obtained licenses in a state nor become a qualified surplus lines insurer therein, but also most captive insurance companies as they typically do not become either extensively licensed outside their domicile jurisdiction or authorized to write coverages on a surplus lines basis.
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