State RegulationsTN specificDifficulty 1/5
Under Tennessee insurance law, an insurance company is classified as "domestic" if it was formed under the laws of which jurisdiction?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
T.C.A. § 56-1-102 supplies the classification of insurers by jurisdiction of formation: a domestic insurer is one formed under the laws of Tennessee. The classification matters because domestic companies are chartered and regulated at formation by the Tennessee Department of Commerce & Insurance, while companies formed elsewhere fall into the foreign or alien categories.
Why the other options are wrong
- A) Interstate compacts do not determine domicile; only the laws under which the company was formed matter.
- B) Geography within the United States is irrelevant; a company formed in another state is not domestic in Tennessee.
- C) A company formed under another country's laws is not domestic; it falls into the alien classification under T.C.A. § 56-1-102.
Memory hook
Domestic means made-in-Tennessee — formed under Tennessee law.