Final answer:
Property-casualty insurance companies are required to obtain licensing from the state before they can operate, ensuring they meet certain standards to protect consumers.
Step-by-step explanation:
All states require property-casualty insurance companies to receive licensing before operating within the state. The process of licensing ensures that companies meet certain regulatory standards imposed by the state to protect consumers. Without a license, an insurance company cannot legally sell insurance policies or adjust claims within that state.
The licensure process often involves the submission of an application, payment of licensing fees, and passing of a licensing exam to prove knowledge of local insurance laws and regulations. Once licensed, insurance companies are also subject to ongoing regulation and must comply with various state laws regarding financial solvency, market conduct, and consumer protection.