State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An insurer formed under the laws of New York but licensed to transact business in California is classified, from California's perspective, as a:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Classification depends on where the insurer is organized: a domestic insurer is organized under the laws of California; a foreign insurer is organized under the laws of another state; an alien insurer is organized under the laws of another country. A New York company doing business in California is therefore a foreign insurer. Whether an insurer is admitted (authorized by the Commissioner) is a separate question from its domestic/foreign/alien status.
Why the other options are wrong
- A) A domestic insurer is organized under California law, not another state's law.
- B) An alien insurer is formed under the laws of a foreign country, not another U.S. state.
- C) Admitted/nonadmitted refers to authorization by the Commissioner to transact business, not where the insurer was formed.
Memory hook
Domestic = born in California. Foreign = another state. Alien = another country.