Marcus serves as the risk manager for a large hospital network in Georgia. After evaluating several coverage proposals, he selects a liability policy from Apex Indemnity Group. This insurance entity is owned entirely by its shareholders, whose primary goal is to realize a return on their investment through corporate dividends. Apex Indemnity Group was chartered and incorporated under the laws of Florida, but it has fully complied with Georgia's regulatory requirements and holds a formal license to sell policies within Georgia.
Which of the following terms correctly classify this insurer from the perspective of the state of Georgia? (Select all that apply)
- Stock insurerAnswer
- Foreign insurerAnswer
- Authorized (admitted) insurerAnswer
- DMutual insurer
- EAlien insurer
Answer
The correct classifications are Stock insurer, Foreign insurer, and Authorized (admitted) insurer.
The insurer is a stock company because it is owned by shareholders. It is a foreign insurer because it is incorporated in one US state (Florida) while operating in another (Georgia). Finally, it is an authorized insurer because it holds a formal license to conduct business in the state of Georgia.
Step-by-Step Solution
Key Concept
Insurer Classification by Domicile, Ownership, and Authorization