California Life and Health Insurance Practice Exam 2025 – Complete Test Prep

The term that describes an insurer that has met the qualifications necessary to do business in California is "admitted." An admitted insurer is one that has been granted a license by the state to operate and sell insurance products within its borders. This means the insurer meets specific regulatory requirements, such as financial stability, governance, and compliance with state laws and regulations.

Being admitted also provides certain consumer protections. For example, policies written by admitted insurers are typically backed by state insurance guaranty associations, which offer a level of security for policyholders in the event an insurer goes bankrupt. This adds an important layer of trustworthiness and reliability for consumers choosing insurance products.

In contrast, an unadmitted insurer has not received this approval and may not be able to operate legally within the state. Options like "excluded" and "authorized" may refer to different contexts and are not standard terminology used to describe an insurer's qualifications to do business in the state. "Authorized" might be loosely understood in a similar context but is not the formal term used in this specific insurance regulatory framework.