Which of the following describes a non-admitted insurer?

A non-admitted insurer is defined as one that does not hold a license from a particular state to engage in providing insurance coverage within that state's jurisdiction. These insurers are not subject to the same regulatory requirements as admitted insurers, which means they often can offer unique or specialized coverages that may not be available through traditional, licensed providers. The lack of licensure highlights the distinction in regulatory oversight, thereby indicating that consumers engaging with non-admitted insurers may face different risks and protections.

The other choices do not accurately capture the essence of what a non-admitted insurer is. For instance, operating in any state does not apply since non-admitted insurers can only operate in states that permit them to do so on a surplus lines basis. Additionally, the aspect of paying higher taxes relates to financial obligations but is not inherently tied to the definition of being non-admitted. Lastly, the limitation to a specific geographic area (like Colorado) does not define a non-admitted insurer, as such insurers can operate across multiple states as authorized by those states' surplus lines regulations. Therefore, the most accurate characterization is that a non-admitted insurer is one that is not licensed by the state to provide direct protection, making choice B the correct answer.