Which type of insurance company is licensed to operate in Florida?

The chosen answer is "authorized" because an authorized insurance company is one that has received a license from the state of Florida, allowing it to conduct business within the state. This licensing process ensures that the company meets specific regulatory requirements, including financial stability and adherence to state insurance laws. Authorized companies are subject to the oversight of the Florida Office of Insurance Regulation, which helps protect consumers by ensuring that these companies operate fairly and responsibly.

In contrast, unauthorized companies are those that have not obtained a license to operate in Florida and therefore cannot legally sell insurance within the state. While foreign and alien companies refer to the location of a business in relation to its home state—foreign indicating a company based in another U.S. state and alien indicating a company based outside the U.S.—they can only operate in Florida if they are also authorized. Therefore, the term "authorized" directly signifies the necessary licensing required to operate legally in Florida.