A company had its certificate of authority revoked because of bad sales practices. This type of company is known as:

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Prepare for the Florida Claims Adjuster (6-20) Test. Use flashcards and multiple choice questions, with hints and explanations for each question. Ace your exam!

Multiple Choice

A company had its certificate of authority revoked because of bad sales practices. This type of company is known as:

Explanation:
The key idea is that a certificate of authority is the regulatory license that lets an insurer operate in a state. If that license is revoked, the company no longer has authority to transact insurance there, so it is considered unauthorized (often referred to as non-admitted) in that jurisdiction. This means it cannot legally write new policies or take premiums in Florida until it regains authorization. An admitted company is still licensed and regulated, which is not the case after revocation; the other terms don’t describe a company without authority.

The key idea is that a certificate of authority is the regulatory license that lets an insurer operate in a state. If that license is revoked, the company no longer has authority to transact insurance there, so it is considered unauthorized (often referred to as non-admitted) in that jurisdiction. This means it cannot legally write new policies or take premiums in Florida until it regains authorization. An admitted company is still licensed and regulated, which is not the case after revocation; the other terms don’t describe a company without authority.

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