Registered Insurer

What Does Registered Insurer Mean?

A registered insurer is an insurance company who has met government standards to operate legally within a state or region. Insurance companies must file for licenses from government authorities to become registered insurers. In this way, the government can validate their legitimacy and credibility.

Insuranceopedia Explains Registered Insurer

Although many insurance companies are very large and well-known, fake and fraudulent companies may still pop up and earn some market share. These illegitimate companies can sell fake policies that have no real benefits. In other words, financial crimes can happen in the insurance world. This is why state governments go through the process of licensing and registering insurers. Doing this also helps the government make sure that the particular companies have the means to pay out the benefits that they actually claim they are able to pay.