Final answer:
A state-issued document that enables an insurance company to operate as an admitted insurer is known as a certificate of authority. It represents part of the regulatory measures overseen by state insurance regulators, with overarching coordination by groups like the National Association of Insurance Commissioners.
Step-by-step explanation:
A state-issued document empowering an insurance company to become an admitted insurer is called a certificate of authority. This is part of government regulation of insurance, which in the United States is primarily handled at the state level. Entities like the National Association of Insurance Commissioners facilitate the interaction and strategy sharing among state regulators, whose objectives typically include keeping insurance prices low and ensuring widespread coverage.
For insurance companies, managing adverse selection is a critical aspect of their business. By offering insurance through employers, companies can mix high-risk and low-risk individuals within one risk group, thus balancing and mitigating potential losses. The Affordable Care Act introduced health insurance exchanges to help individuals, including those from companies that do not provide insurance, find coverage.
Insurance terms such as premium, which is the payment made to an insurance company, and occupational license, a credential indicating that an individual has met certain educational or testing standards, are also relevant in the context of insurance regulation and operations.