What requirement must an admitted company in Connecticut fulfill?

What requirement must an admitted company in Connecticut fulfill?

• A. Be rated A or better by an agency
• B. Be licensed in Connecticut
• C. Have a minimum capital of $1 million
• D. Conduct business within the state for 10 years

Answer: (B)

An admitted company in Connecticut must be licensed in the state. Being licensed signifies that the insurance company has met specific regulatory standards and requirements set by the Connecticut Insurance Department. This ensures that the company is financially capable of fulfilling its obligations to policyholders and adheres to the laws governing insurance practices in Connecticut. The licensing process involves thorough evaluations of the insurer's financial stability, governance, and compliance with local regulations, which are critical for maintaining consumer protection within the state. A company that is admitted is authorized to transact business, issue policies, and offer coverage to residents of Connecticut, providing them with legal protections and assured state oversight. While ratings, capital requirements, and duration of business operations may be relevant factors in evaluating an insurance company's overall credibility or operational history, they do not serve as prerequisites for being considered an admitted company specifically. Therefore, being licensed in Connecticut is the key requirement that confirms the company's legitimacy and acknowledges its authority to conduct insurance business within the state.

An admitted company in Connecticut must be licensed in the state. Being licensed signifies that the insurance company has met specific regulatory standards and requirements set by the Connecticut Insurance Department. This ensures that the company is financially capable of fulfilling its obligations to policyholders and adheres to the laws governing insurance practices in Connecticut.

The licensing process involves thorough evaluations of the insurer's financial stability, governance, and compliance with local regulations, which are critical for maintaining consumer protection within the state. A company that is admitted is authorized to transact business, issue policies, and offer coverage to residents of Connecticut, providing them with legal protections and assured state oversight.

While ratings, capital requirements, and duration of business operations may be relevant factors in evaluating an insurance company's overall credibility or operational history, they do not serve as prerequisites for being considered an admitted company specifically. Therefore, being licensed in Connecticut is the key requirement that confirms the company's legitimacy and acknowledges its authority to conduct insurance business within the state.