State RegulationsFL specificDifficulty 3/5
Which statement correctly distinguishes authorized (admitted) insurers from unauthorized (non-admitted) insurers in Florida?
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 B is correct
Under Chapter 624, Florida Statutes, authorization turns on the certificate of authority issued by the Office of Insurance Regulation - not on the insurer's place of organization, which determines only the domestic/foreign/alien classification. Unauthorized (non-admitted) insurers generally may not transact insurance in Florida, but Florida's surplus lines law permits licensed surplus lines agents to place certain hard-to-place risks with unauthorized insurers under strict conditions. Ordinary business may never be placed with a non-admitted insurer.
Why the other options are wrong
- A) Florida's surplus lines law permits licensed surplus lines agents to place certain risks with unauthorized insurers, so blanket participation is lawful in that channel.
- C) Place of organization determines whether an insurer is domestic, foreign, or alien - a classification separate from authorized/unauthorized.
- D) Paying premium taxes does not confer authorized status; the OIR must issue a certificate of authority after the insurer satisfies qualification requirements.
Memory hook
Certificate of authority = admitted; no certificate = non-admitted.