State RegulationsGA specificDifficulty 1/5
An insurance company organized under the laws of Canada applies to sell policies in Columbus, Georgia. Under O.C.G.A. § 33-3-1, how is the company classified?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under O.C.G.A. § 33-3-1, insurers are classified by where they are organized: a domestic insurer is formed under Georgia law, a foreign insurer under the laws of another U.S. state, and an alien insurer under the laws of any other country. A Canadian company is therefore alien, a label that drives the additional requirements it must meet before transacting business in Georgia.
Why the other options are wrong
- A) Domestic status belongs only to insurers formed under Georgia law.
- B) Foreign refers to another state of the United States, not another country.
- D) Reciprocal describes an exchange structure of subscribers, not the company's country of origin.
Memory hook
Across an ocean or a border? Alien. Across a state line? Foreign.