Which company type requires compliance with the state's Department of Insurance regulations?

An admitted insurance company is one that has received authorization from the state's Department of Insurance to operate within that state. This means that it complies with the state's regulatory framework, including financial standards, market conduct rules, and consumer protection regulations.

Being admitted allows the company to offer specific insurance products to consumers and ensures that the state can monitor the company's financial health and business practices. This compliance is crucial for maintaining the overall integrity and stability of the insurance market within the state, as it helps protect policyholders.

In contrast, non-admitted insurance companies operate outside of the state's regulatory framework and can provide coverage without the same level of oversight. Foreign insurance companies, which are based in one state but operate in another, must also comply with that state's regulations, but they are governed by the laws of their home state as well. Alien insurance companies, those based outside of the United States, face a different set of regulations coordinated by various state authorities. Therefore, the requirement for compliance with the state's Department of Insurance regulations specifically applies to admitted insurance companies.