Which statement accurately describes a non-admitted insurer?

A non-admitted insurer is one that is not licensed to conduct insurance business in a particular state. Therefore, it cannot provide coverage in those states where it lacks the necessary licensing. This is important because it ensures that insurers meet certain regulatory standards and consumer protections mandated by the state. Non-admitted insurers often have more flexibility regarding their products and rates, but they are limited in where they can operate legally.

The other options do not accurately capture the definition of a non-admitted insurer. For instance, while some non-admitted insurers might operate in multiple states, they are restricted by the licensure requirements specific to each state. Additionally, non-admitted insurers provide coverage across various sectors, including personal and commercial insurance, rather than being limited to only commercial offerings. Lastly, they may or may not provide insurance to federal agencies, and this characteristic does not define their non-admitted status. Thus, the accurate portrayal of a non-admitted insurer is that it cannot provide coverage in states where it is not licensed.