What is the term for an insurance company licensed to operate in a particular state?

The correct term for an insurance company that is licensed to operate in a particular state is "Admitted Company." An admitted company has received approval from the state's insurance department to conduct business within that jurisdiction, which means they comply with the state's regulations and requirements, including solvency standards and the types of policies they can offer. This licensure provides assurance to consumers that the company is financially stable and adheres to state laws, making it a reliable choice for insurance coverage.

In contrast, a foreign company refers to an insurer that is licensed in one state but operates in another, while a surplus lines insurer typically refers to a company that provides coverage not available from admitted insurers, often for higher risk situations or specialized coverages. An unauthorized company is one that has not obtained a license to operate in the state, meaning it does not have the required regulatory approvals and is not subject to the same oversight as admitted companies.