Before an insurer may transact business in a specific state - they must apply for a license or ___________ from the state department of insurance and meet any financial (capital and surplus) requirements set down by the state. A __________ is issued by the state department of insurance and shows that the insurer has power to write insurance contracts in that state.

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1. Before an insurer may transact business in a specific state - they must apply for a license or ___________ from the state department of insurance and meet any financial (capital and surplus) requirements set down by the state. A __________ is issued by the state department of insurance and shows that the insurer has power to write insurance contracts in that state.