State RegulationsGA specificDifficulty 1/5
Under Georgia insurance law, an insurer that is incorporated under the laws of another state in the United States and transacts business in Georgia 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, the classification depends on where the insurer is chartered: a DOMESTIC insurer is incorporated under Georgia law, a FOREIGN insurer is incorporated under the laws of another state in the United States, and an ALIEN insurer is incorporated under the laws of another country. An out-of-state but U.S.-chartered insurer doing business in Georgia is therefore foreign.
Why the other options are wrong
- A) Domestic is reserved for insurers incorporated in Georgia itself under O.C.G.A. § 33-3-1; another state's charter is foreign.
- B) Alien describes an insurer incorporated under the laws of another COUNTRY; another U.S. state is the foreign classification under O.C.G.A. § 33-3-1.
- D) Surplus lines is not the chartered-domicile classification defined in O.C.G.A. § 33-3-1; the insurer's out-of-state charter makes it foreign.
Memory hook
Home = domestic, other state = foreign, other country = alien.