Which of the following best describes a nonadmitted insurer?

A nonadmitted insurer is best described as an unauthorized insurer in a specific state. This means that the insurer has not received a license to operate in that state, which typically involves complying with local regulations and state requirements. Nonadmitted insurers can still provide coverage, often in specialty markets or for unique risks that admitted insurers may not cover.

Being classified as unauthorized does not necessarily imply that such insurers are unregulated; they must operate under different regulations compared to admitted insurers, often providing coverage in niche areas where there is less competition.

The other choices do not accurately capture the essence of a nonadmitted insurer. A licensed insurer would be an admitted insurer, while designating an insurer that exclusively sells life insurance or one that specializes in annuities does not pertain to the licensing status or authorization to operate in a particular state.