15 - Definitions

An insurance company that has not been approved by the state is considered to be? A) Admitted. B) Foreign. C) Authorized. D) Unauthorized.

D) Unauthorized. Insurers who have not been approved to do business in the state are considered unauthorized or non-admitted

ABC Life Insurance company's home office is located in Massachusetts and is incorporated in Massachusetts. In Florida they are considered to be? A) Non-Admitted. B) Assessment Mutual Company. C) Domestic. D) Foreign.

D) Foreign. A foreign insurer is an insurance company that is incorporated in another state.

Which of the following statements is CORRECT about the Life and Insurance Guaranty Association? A) It guarantees that premiums will not be increased. B) It is limited to guarantees or policies of $1,000,000 or more. C) It guarantees that anyone can buy life and health insurance. D) It is funded by insurance companies through assessments.

D) It is funded by insurance companies through assessments. The Life and Insurance Guaranty Association is funded by insurance companies through assessments and will pay claims if an insurance company becomes insolvent.

An insurance company that is organized or chartered in a country other than the United States is defined as? A) external. B) foreign. C) alien. D) domestic.

C) alien. An alien company is one that is chartered and organized in any country other than the United States.

An insurance company formed under the laws of Canada would be known in Florida as? A) a domestic company. B) a mutual company. C) an alien company. D) a foreign company.

C) an alien company. An insurance company incorporated under the laws of another country is called an alien company.

The Florida Life and Health Insurance Guaranty Association was established to provide funds? A) to assist insolvent insureds in paying their insurance premiums. B) when an insurer fails to pay a disputed claim. C) to pay creditors of insolvent insurers. D) to protect an insured in the event of an insurer's insolvency.

D) to protect an insured in the event of an insurer's insolvency. The Florida Life and Health Insurance Guaranty Association exists to protect an insured in the event of an insurer's insolvency.

An insurance company can be any of the following EXCEPT? A) foreign and nonadmitted. B) alien and nonadmitted. C) domestic and alien. D) domestic and admitted.

C) domestic and alien. A domestic insurer is an insurance company incorporated in this state. An alien insurer is one that is incorporated outside the United States.