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:

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.