What defines an unauthorized insurer in Connecticut?

The definition of an unauthorized insurer in Connecticut revolves around the requirement for a Certificate of Authority. An insurer is deemed unauthorized if it has not obtained this crucial document, which is issued by the state and allows the company to conduct insurance business within Connecticut. Essentially, the Certificate of Authority signifies that the insurer has met all regulatory requirements, including financial solvency, compliance with state laws, and operational standards. If an insurer operates without this certification, it is considered unauthorized, which could lead to penalties for both the insurer and the agents working with them, as they are not legally recognized to provide insurance coverage within the state.

The other options refer to situations that do not specifically address the fundamental criteria for being classified as unauthorized. An insurer merely applying for a license does not mean it is unauthorized, as it could still be in the process of becoming authorized. Offering limited coverage is not a criteria for authorization as even authorized insurers can offer limited policies. Lastly, simply paying fees does not guarantee that an insurer is authorized; it must also be evaluated and approved by the state regulators.