PSI Ohio Insurance Practice Exam

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Prepare for the PSI Ohio Insurance Exam. Utilize flashcards and multiple choice questions with hints and detailed explanations. Gear up for success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following is NOT authorized to transact insurance in a state?

Admitted insurer
Non-admitted insurer
Licensed insurer
Surplus lines insurer

The correct answer is: Non-admitted insurer

In the context of insurance regulation, a non-admitted insurer is one that does not hold a license to operate in a particular state. These insurers are not authorized to transact insurance within that state's market and may only provide coverage through surplus lines brokers under specific circumstances. This typically occurs when an insurance product is not available through admitted insurers, which have met the regulatory requirements to operate in that state. Admitted insurers, on the other hand, are those that have received licenses and are allowed to transact business in the state because they comply with local regulations. Licensed insurers and surplus lines insurers also engage in transactions, albeit under different regulatory frameworks. Understanding the distinctions between these types of insurers is crucial. Non-admitted insurers can provide essential coverage, but their lack of state authorization means they may not be subject to the same consumer protections as admitted insurers.