An insurer organized under the laws of the United Kingdom holds a Florida certificate of authority and transacts insurance in Florida. How is this insurer classified?

Why A is correct

Under Chapter 624, Florida Statutes, an insurer formed under the laws of a country other than the United States is an alien company - even though it may hold a Florida certificate of authority and be fully authorized to transact business here. The alien/foreign/domestic classification turns solely on the place of organization, while authorization depends on the OIR-issued certificate of authority. A company formed in another U.S. state would be foreign; confusing the place of formation with authorization is the classic exam error this question tests.

Why the other options are wrong

• B) A foreign company is organized under the laws of another U.S. state; the United Kingdom is a foreign nation, which makes the company alien.
• C) Holding a Florida certificate of authority makes the insurer authorized, not domestic; domestic requires organization under Florida law.
• D) Formation outside the United States does not make an insurer unauthorized; with an OIR certificate of authority it lawfully transacts insurance in Florida.

Memory hook

Alien = from outside the U.S. borders; foreign = from another state.