What must an unauthorized insurer demonstrate to be entitled to public confidence?

An unauthorized insurer must demonstrate a stable and unimpaired financial condition to be entitled to public confidence. This is because stability and financial health are critical factors that assure potential policyholders that the insurer can honor claims and fulfill its financial obligations. Even though being able to pay claims promptly and complying with regulations are important, the core aspect that builds this confidence is the overall financial robustness of the insurer. Policyholders need to be assured that the insurer has the necessary resources to cover claims and remain in business over time, which is reflected in a stable financial condition. Without this assurance, even if an insurer complies with regulations or offers competitive pricing, it may still lack the trust needed from the public to operate effectively in the market.