State RegulationsFL specificDifficulty 1/5
An insurer that was organized under the laws of a country outside the United States wants to write coverage in Florida. In Florida insurance terminology, what is this insurer called?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the Florida Insurance Code (Chapter 624, Florida Statutes), an alien company is an insurer formed or organized under the laws of a foreign country, as distinct from a domestic company, which is formed in Florida, and a foreign company, which is formed in another United States jurisdiction. An admitted alien insurer may lawfully transact in Florida with a certificate of authority.
Why the other options are wrong
- A) An insurer formed in another United States state is a foreign company, not an alien company.
- C) Failure to hold a certificate makes an insurer unauthorized; alien status depends on place of formation abroad.
- D) The classification concerns where the insurer was formed, not where its applicants reside.
Memory hook
Alien = born under another country's flag.