What type of insurer is licensed or chartered to transact insurance in Michigan?

The correct response identifies authorized insurers as those that have met the necessary regulatory requirements to operate within Michigan. These insurers have received a license or charter from the state's insurance department, permitting them to market and sell insurance products legally to consumers. This licensure process ensures that the insurer adheres to financial stability, consumer protection laws, and other essential regulations designed to maintain a reliable insurance market.

In contrast, unauthorized insurers do not hold a license to operate legally within the state, meaning they cannot transact insurance with the public in Michigan. Independent agents are intermediaries who sell insurance policies from various companies but do not themselves constitute insurers. Reinsurers provide insurance to other insurance companies rather than directly to consumers, and likewise do not function as primary insurers in the traditional sense. Thus, only authorized insurers are recognized as legitimate entities allowed to conduct insurance business in Michigan.