State RegulationsFL specificDifficulty 1/5
An insurance company is incorporated under the laws of Florida and maintains its home office in Tallahassee. In Florida insurance terminology, this company is a:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 624, Florida Statutes, an insurer formed under the laws of Florida is a domestic company, regardless of where it sells its policies. A company formed in another U.S. state is foreign, and one formed in another country is alien. Note that domestic status concerns only the place of organization, not licensure: a domestic company must still hold a certificate of authority from the Office of Insurance Regulation to transact insurance in Florida.
Why the other options are wrong
- A) A foreign company is organized under the laws of another U.S. state, not under Florida law.
- C) An alien company is organized under the laws of a country other than the United States.
- D) Unauthorized refers to the absence of a certificate of authority to transact business in Florida - a status that can apply to a domestic, foreign, or alien insurer alike.
Memory hook
Domestic = born in Florida.