State RegulationsFL specificDifficulty 2/5
An insurer is incorporated in Tallahassee under the Florida statutes and sells policies in both Florida and Alabama. How is this insurer classified in Florida?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under the Florida Insurance Code, classification turns on where the insurer was organized: an insurer incorporated under Florida law is a domestic company in Florida regardless of where it also sells. Selling in other states does not change its domestic status in Florida, though it would be foreign in those other states.
Why the other options are wrong
- A) Foreign status applies to insurers formed in other states; this insurer was formed in Florida.
- B) Alien status applies to insurers formed under foreign countries' laws, not to insurers selling across state lines.
- D) An authorized domestic insurer may lawfully sell in other states where it qualifies; interstate sales do not make it unauthorized.
Memory hook
Tallahassee charter = Florida domestic, everywhere in Florida.