What term describes an insurer that is not licensed to do business in a particular state?

The term that describes an insurer that is not licensed to do business in a particular state is "unauthorized insurers." This term specifically refers to insurance companies that operate in a state without obtaining the necessary licenses and approvals from that state's regulatory authority. Without this authorization, these insurers cannot legally sell insurance policies or solicit business within that jurisdiction.

In contrast, authorized insurers have met all regulatory requirements and are permitted to operate in the state. Foreign insurers are those that are licensed in one state but operate in another; despite being called "foreign," they are legitimate entities within the regulatory framework. Resident insurers are those that are both incorporated and licensed in the same state where they conduct their business. Therefore, the distinction of unauthorized insurers is vital in understanding the regulatory landscape of insurance operations in different states.