State RegulationsFL specificDifficulty 1/5
In Florida insurance terminology, what is a domestic company?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under the Florida Insurance Code (Chapter 624, Florida Statutes), a domestic company is an insurer organized or incorporated under the laws of Florida. Domicile under Florida law, not the location of customers or sales territory, determines the domestic classification.
Why the other options are wrong
- B) An insurer formed under another state's laws is a foreign company in Florida.
- C) An insurer formed under a foreign country's laws is an alien company in Florida.
- D) Where an insurer sells does not matter; an insurer formed elsewhere that sells only in Florida is still foreign or alien.
Memory hook
Domestic = born in Florida (incorporated here).