State RegulationsFL specificDifficulty 2/5
An insurer is incorporated in New York under New York law and is authorized to sell policies in Miami. How is this insurer classified in Florida?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under the Florida Insurance Code, an insurer organized under the laws of another state of the United States, such as New York, is a foreign company in Florida. Authorization to transact insurance here does not domesticate the company; only formation under Florida law would make it domestic.
Why the other options are wrong
- B) A certificate of authority permits transacting business; it does not change where the insurer was formed.
- C) Alien status requires formation under a foreign country's laws, not merely operating across state lines.
- D) Fraternal status depends on the lodge-system member organization structure, not multistate operations.
Memory hook
New York charter selling in Miami = foreign insurer.