State RegulationsFL specificDifficulty 2/5
An insurer is organized under the laws of Georgia and is authorized to transact insurance in Florida. To Florida regulators, this insurer is a:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Chapter 624, Florida Statutes, an insurer organized under the laws of another U.S. state is a foreign company in Florida. Because this insurer is authorized to transact insurance here, it is also an authorized (admitted) insurer. The two classifications answer different questions: domestic/foreign/alien depends on the place of organization, while authorized/unauthorized depends on holding a certificate of authority from the Office of Insurance Regulation. A foreign company can therefore be perfectly legal and admitted in Florida.
Why the other options are wrong
- A) Domestic companies are organized under Florida law; this insurer is a Georgia corporation.
- B) Alien companies are organized under the laws of a country other than the United States; Georgia is another state, not another nation.
- C) The insurer is authorized to transact business in Florida, so it is not unauthorized.
Memory hook
Foreign = another state; alien = another country.