State RegulationsFL specificDifficulty 3/5
An insurer incorporated in Georgia sells policies in Florida; another insurer incorporated in Florida sells policies in Georgia. Which statement is correct?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under the Florida Insurance Code, the domestic, foreign, and alien classifications are relative to the state where the insurer is being characterized: an insurer is domestic in its state of incorporation and foreign in every other state. Alien status is reserved for insurers formed under the laws of a foreign country, which neither of these is.
Why the other options are wrong
- A) An insurer is domestic only in its formation state, so neither is domestic in both states.
- B) Each insurer is domestic somewhere, in its own state of incorporation, so neither is foreign everywhere.
- D) Aliens are formed under foreign nations' laws; sister-state insurers are foreign, not alien, in one another's states.
Memory hook
Domestic at home, foreign away.