State RegulationsFL specificDifficulty 1/5
In Florida insurance terminology, what does it mean for an insurer to be authorized (admitted)?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under the Florida Insurance Code, an authorized (admitted) insurer is one that has qualified with the state and holds a certificate of authority from the Office of Insurance Regulation permitting it to transact insurance in Florida. Admitted status brings the insurer within Florida's regulatory supervision, including participation in the guaranty association.
Why the other options are wrong
- B) An insurer's physical office location does not make it admitted; qualification and the certificate of authority do.
- C) The classification concerns the insurer's legal authority to transact, not who its customers are.
- D) The guaranty association does not approve insurers; it pays covered claims when admitted member insurers fail.
Memory hook
Admitted = holds a certificate of authority.