State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
In insurance classification, an insurer organized under the laws of a foreign country and admitted to do business in California is described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An insurer is classified by its state or country of organization relative to California: domestic means organized under California law (CIC Section 26); foreign means organized under another U.S. state's law (Section 27); alien means organized under a foreign country's law. An alien insurer can be admitted in California — holding a certificate of authority — even though it is alien.
Why the other options are wrong
- B) Domestic means organized under California law, not under a foreign country's law.
- C) Foreign refers to insurers organized under the laws of another U.S. state, not another country.
- D) Admitted or nonadmitted refers to holding a California certificate of authority; an alien insurer may be admitted.
Memory hook
Domestic = California. Foreign = another state. Alien = another country.