Final answer:
Nonlicensed insurers cannot legally sell insurance without meeting state regulations, and there is no National Insurance Association that grants permissions for this. Instead, they may be allowed to operate through surplus lines or non-admitted insurance with state approval, potentially by partnering with a licensed agent or broker.
Step-by-step explanation:
Nonlicensed insurers are typically prohibited from selling insurance because insurance regulations are enforced at the state level and licensure is a key component of those regulations. States have insurance commissioners and a national association, the National Association of Insurance Commissioners, aimed to maintain a stable insurance market and ensure public protection. There is no 'National Insurance Association' that grants special permissions in reality, and it is required by law for insurers to obtain licensing in the states they operate.
However, there may be exceptions where nonlicensed insurers can operate legally, but this would typically involve obtaining approval through a state's surplus lines or non-admitted insurance regulations, not through a partnership or government backing. Such insurers must meet specific criteria and are generally used for risks that licensed insurers are unwilling or unable to cover. Therefore, the most accurate answer to the student's question, based on the given choices, would likely be that a nonlicensed insurer needs to partner with a licensed insurance agent or broker, as this partnership may relate to those exceptional circumstances where nonlicensed (non-admitted or surplus lines) insurers can provide coverage for certain risks that licensed insurers will not insure.