What does a certificate of authority allow?

A certificate of authority is a legal document issued by a state regulatory agency, allowing an insurance company to operate within that state. When an insurance company obtains this certificate, it verifies that the company has met all necessary regulatory requirements, such as financial stability and compliance with state laws. This certification is crucial because it ensures that the company is authorized to sell insurance products and provide coverage to residents within that particular state—in this case, Indiana.

The certificate protects consumers by ensuring that only companies that meet stringent regulations can offer insurance. It also provides a framework for regulatory oversight, which helps maintain the integrity of the insurance market. Without this certificate, an insurer cannot legally conduct business in Indiana, highlighting the importance of regulatory compliance for consumer protection and market integrity.

Thus, the correct answer reflects the fundamental purpose of the certificate of authority in establishing lawful operations and consumer confidence in insurance providers within the state.