State RegulationsTX specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A life insurer is organized under the laws of Canada and is authorized to engage in the business of insurance in Texas. How is that insurer classified in Texas?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 841.001(2), an insurance company organized under the laws of a foreign country is an alien company in Texas. An alien insurer can still be authorized to do business here: TIC 801.051 directs the department to approve the application and issue a certificate of authority to act as an insurer when the applicant has complied with the law. Under TIC 801.052 the certificate then authorizes the insurer to engage in the business of insurance and states the specific kinds of insurance it may write.
Why the other options are wrong
- B) A domestic insurer is organized under the laws of this state, not another country.
- C) A foreign insurer is organized under the laws of another state or jurisdiction of the United States, not another country.
- D) An alien insurer that complies with the code can be authorized in Texas, so it is not automatically unauthorized.
Memory hook
Domestic is Texas, foreign is another state, alien is another country.