Which statement regarding a Certificate of Authority is NOT true?

A Certificate of Authority is a crucial document that allows insurance companies to legally operate and provide services within a particular state. It is issued by state regulators and is necessary for all insurers to ensure that they meet the required standards for financial stability, compliance with regulations, and consumer protection.

The statement that is not true is related to the issuance of the Certificate of Authority to group insurance participants. The Certificate of Authority is intended for insurance companies rather than individuals or groups participating in insurance policies. Insurance participants or policyholders do not receive a Certificate of Authority; instead, they are often provided policy documentation that outlines their coverage and responsibilities.

On the other hand, a Certificate of Authority can indeed be revoked by the state if the insurer fails to comply with the regulations or if it poses a risk to policyholders. This ensures that the insurance market remains fair and reliable for consumers.