183k views
4 votes
According to Florida law, which of the following statements accurately describes an admitted mail order insurance company?

1) An admitted mail order insurance company is not required to be licensed in Florida.
2) An admitted mail order insurance company is authorized to transact insurance business in Florida.
3) An admitted mail order insurance company can only sell insurance policies through mail order.
4) An admitted mail order insurance company is exempt from all insurance regulations in Florida.

1 Answer

1 vote

Final answer:

An admitted mail order insurance company in Florida is authorized to do business in the state, indicating compliance with state laws and regulations. They must be licensed and are not exempt from insurance regulations.

Step-by-step explanation:

According to Florida law, an admitted mail order insurance company is one that is authorized to transact insurance business in Florida. This status indicates that the company has met the necessary state requirements and regulations to provide insurance products and services.

Therefore, the correct statement is that an admitted mail order insurance company is authorized to transact insurance business in the state of Florida. Being authorized to transact insurance means that the company is licensed to operate in Florida and is subject to state insurance regulations. The fact that a company sells policies through mail order does not exempt it from licensure requirements or from adhering to applicable insurance laws and regulations.

User Galimov Albert
by
7.7k points