State RegulationsMA specificDifficulty 2/5
An insurer organized under the laws of Canada applies to write life insurance in Massachusetts. Under M.G.L. c. 175, § 1, how is this insurer classified?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.G.L. c. 175, § 1 fixes the domicile classifications: a domestic insurer is organized under this state's laws, a foreign insurer under the laws of another state, and an alien insurer under the laws of another country. A Canadian insurer is therefore an alien insurer, and its admission to do business in Massachusetts does not change its domicile classification. The Massachusetts Division of Insurance regulates each category through its own entry requirements, including the certificate-of-authority process.
Why the other options are wrong
- B) The foreign label under M.G.L. c. 175, § 1 is reserved for insurers organized in another state, not another country.
- C) Registration does not change domicile; an insurer organized under Canadian law remains an alien insurer under M.G.L. c. 175, § 1 even after admission.
- D) Mutual describes ownership structure, not domicile; the domicile labels in M.G.L. c. 175, § 1 and the stock-versus-mutual distinction answer different questions.
Memory hook
Domestic = here, foreign = another state, alien = another country — Canada is alien.