A domestic insurance company is one that was first licensed (received its Certificate of Authority) in the state in question.That is, if the insurer were formed in Florida, according to the then-existing Insurance Code of Florida, it would be a Florida domestic insurer.It could then become authorized to transact business in other states provided that it also complied with the Insurance Codes of the other states.hat is a domestic insurance company? already exists. already exists as an alternate of this question. exists and is an alternate of. Do you plan on selling emberlight through retail stores, or just through your online website? What does to insure domestic tranquility mean? To insure domestic tranquility means? What is the definition to insure ...