What defines an unauthorized insurer?

An unauthorized insurer is defined as one that operates without the appropriate license required by the state in which it conducts business. This typically means that the insurer should be licensed to sell insurance policies in that state but has not obtained the necessary authorization to do so. In this context, having the correct license is essential for an insurer to be in compliance with state regulations and to provide protection to policyholders and maintain the integrity of the insurance market.

An insurer licensed to operate in multiple states is fully authorized and compliant with regulatory standards in those jurisdictions, so this does not align with the definition of an unauthorized insurer. An insurer with an expired licensure may still be in the process of renewing that license, but the core definition focuses on the lack of licensing rather than its status. Lastly, the criterion of having a home office outside of Washington is not sufficient on its own to classify an insurer as unauthorized. Insurers can be authorized to operate in multiple states, including those with offices outside local jurisdictions, provided they have the appropriate licenses. Thus, the focus is primarily on the absence of the required licensing, which defines an unauthorized insurer.