What defines an admitted insurer in Pennsylvania?

An admitted insurer in Pennsylvania is defined as an insurer that is licensed to conduct business in the state, which means it has met all the regulatory requirements set forth by the Pennsylvania Department of Insurance. These requirements include demonstrating financial stability, maintaining adequate reserves, and adhering to state laws and regulations. By being licensed, the insurer is permitted to operate within the state, offering insurance policies to consumers while providing certain protections mandated by state law, such as participation in state guarantee funds.

This licensing ensures that admitted insurers are subject to strict oversight and adhere to consumer protection standards, which helps to foster trust and confidence in the insurance market. This contrasts sharply with other categories of insurers, such as non-admitted or surplus lines insurers, which do not have the same level of regulation and oversight in Pennsylvania.