A stock insurance company incorporated under the laws of Canada applies to sell life insurance policies in Georgia. How is the company classified under Georgia insurance law?

Why D is correct

Under O.C.G.A. § 33-3-1, the place of formation controls the classification: a company organized under the laws of another country is an alien insurer. Because the applicant is incorporated in Canada, it is alien for Georgia purposes even though it may later be authorized to transact business in this state.

Why the other options are wrong

• A) Domestic status is reserved for companies organized under Georgia law.
• B) Foreign status is for companies organized in another U.S. state or territory, not another country.
• C) Self-insurance is the retention of risk without an insurance company and does not describe a Canadian stock insurer.

Memory hook

Incorporated outside the U.S.? Alien — no matter how friendly.

Why D is correct

Under O.C.G.A. § 33-3-1, an alien insurer is one formed under the laws of a jurisdiction outside the United States. That classification controls which Insurance Department requirements apply when the company seeks authority to transact business in Georgia.

Why the other options are wrong

• A) Domestic status belongs to insurers formed under Georgia law.
• B) Foreign status applies to insurers formed in other U.S. states, not other countries.
• C) Mutual describes an insurer owned by its policyholders, not the insurer's place of formation.

Memory hook

Across the ocean = alien.