Before a Pennsylvania corporation can open an insurance agency in New Jersey, it MUST

• A. obtain authorization from the New Jersey Department of Treasury to conduct business in New Jersey
• B. obtain authorization from the Federal government
• C. form a joint venture with a New Jersey insurer
• D. resubmit its articles of incorporation to the state

Answer: (A)

Transacting business in a state requires foreign qualification. When a corporation organized in another state wants to operate in New Jersey, it must first be authorized to transact business there. In New Jersey, that authorization comes from the Department of Treasury (specifically the Division of Revenue and Enterprise Services), which issues a certificate of authority to allow the foreign corporation to do business in the state. Without that certification, the company isn’t legally allowed to operate as an insurer or agency in New Jersey.

The other options aren’t correct because federal authorization isn’t needed for a private business to operate in a state, forming a joint venture isn’t a prerequisite to open an agency, and simply resubmitting articles of incorporation isn’t the correct mechanism for a foreign corporation to qualify to do business in New Jersey.