Which of the following is NOT a characteristic of a Domestic Insurer?

A Domestic Insurer is one that is incorporated under the laws of a specific state—in this case, Vermont. Therefore, being incorporated under Vermont law and being subject to Vermont regulations are fundamental characteristics of a Domestic Insurer. Furthermore, these insurers primarily serve the residents of the state in which they are licensed, which adds to their local focus and connection to the community.

The key aspect that distinguishes the correct answer from the others is that a Domestic Insurer is not authorized to operate in multiple states. When an insurer wants to operate in multiple states, it typically becomes either a Foreign Insurer or an Alien Insurer, depending on its incorporation location relative to the states where it conducts business. Hence, the characteristic of being authorized to operate in multiple states does not align with the definition of a Domestic Insurer, making it the correct choice in this context.