To operate as a domestic insurer, what must an insurance company obtain?

To operate as a domestic insurer, an insurance company must obtain a certificate of authority from the South Carolina Department of Insurance. This certificate is essential as it grants permission for the insurer to conduct insurance business within the state. Each state has its own regulatory requirements, and the certificate of authority is a formal acknowledgment that the insurer has met these requirements, including financial solvency, adherence to state laws, and other operational criteria.

The certificate of authority ensures that the insurer is compliant with state regulations designed to protect policyholders and ensure fair practices. Without this certificate, an insurance company cannot legally sell insurance policies or conduct business activities in South Carolina as a domestic insurer. This understanding underscores the importance of state regulation in the insurance industry, where local oversight is critical for consumer protection.