What must an insurer hold to act as an insurer in the state of Maryland?

To operate as an insurer in the state of Maryland, holding a valid certificate of authority is essential. This certificate is a legal document issued by the state’s insurance department that grants permission to an insurance company to conduct business within that jurisdiction. It ensures that the insurer complies with state regulations, financial requirements, and standards necessary to protect policyholders. Without this certificate, a company is not legally permitted to issue insurance policies or provide coverage, thereby limiting its ability to operate in a competitive market.

The other options provided do not reflect the legal requirements for insurers in Maryland or any standard practice recognized in the insurance industry. Therefore, the emphasis on the certificate of authority as a prerequisite for operating as an insurer is pivotal for regulatory compliance and maintaining consumer trust in the insurance marketplace.