Question

What does a certificate of authority allow?

a) A nonresident producer to conduct insurance business
b) An insurance company to exceed coverage limits that
the Guaranty Fund covers
c) An insurance company to conduct insurance business
in Indiana
d) A resident producer to sell insurance contracts

Answer 1

A certificate of authority allows an insurance company to conduct insurance business in Indiana.

Step-by-step explanation:

A certificate of authority allows an insurance company to conduct insurance business in Indiana (option C). This certificate grants the insurance company the legal permission to operate and sell insurance policies within the state. Without a certificate of authority, an insurance company would not be allowed to conduct business in Indiana.