State RegulationsGA specificDifficulty 2/5
An insurer incorporated in another U.S. state applies to the Georgia Insurance Department for a certificate of authority to transact business in Georgia. Under O.C.G.A. § 33-3-1, the insurer is classified as:
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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, a foreign insurer is one formed under the laws of another state or jurisdiction of the United States. Its Georgia classification follows its place of incorporation, and once admitted with a certificate of authority it transacts business in Georgia as an authorized foreign insurer.
Why the other options are wrong
- A) Domestic status is reserved for insurers formed under Georgia law.
- B) Alien status applies to insurers formed under the laws of another country, not another U.S. state.
- D) Being formed outside Georgia does not make an insurer unauthorized; authorization turns on admission by the Insurance Department, which is exactly what the certificate of authority grants.
Memory hook
Other U.S. state = foreign; other country = alien.