Plain English Meaning
Engines that have gone through the FAA's full approval process and carry an official certificate showing they meet a recognised aviation standard. Once approved, they must be looked after and used in line with the rules that come with that approval.
Full Definition
Aircraft engines that have been formally approved by the FAA against a specific airworthiness standard, issued a Type Certificate, and are required to be maintained, overhauled, and operated according to that certificate's terms. Light Sport Aircraft are notable in part because many are powered by engines that are not type certificated.
Context Anchor
You may see this term in Light Sport Aircraft discussions, especially when comparing engines that have full FAA design approval with engines approved under other light-sport rules.
Derivation
Type' refers to a specific approved design or . '' means a certificate has been formally issued by the . Together the phrase means an engine design that the FAA has officially signed as meeting a defined standard.