Final answer:
A non-admitted insurer is not authorized to do business in a state, doesn't participate in state guarantee funds, is not licensed by the state, and isn't regulated by the state insurance department.
Step-by-step explanation:
The characteristic of a non-admitted insurer is that it is not authorized to do business in the state. This means that a non-admitted insurer does not participate in the state guarantee fund, and it is not licensed to sell insurance in the state, nor is it regulated by the state insurance department.
When an insurance market exists, companies may try to avoid selling insurance to those with high risks or they may require those with low risks to buy insurance even at higher rates, highlighting the dynamics between adverse selection and the need for government laws and regulations to manage the insurance industry.