State RegulationsTX specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A life insurance company is incorporated under the laws of the State of Texas and holds a Texas certificate of authority. How is that company classified in Texas?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 841.001(4), an insurance company organized under the laws of this state is a domestic insurance company. The classification matters operationally: under TIC 801.051 the department acts on the application and issues the certificate of authority to act as an insurer under the department's seal, and under TIC 401.051 the department must visit at its principal office each carrier organized under the laws of this state as well as every other carrier authorized to do business here.
Why the other options are wrong
- A) Surplus lines describes eligibility to write certain risks through licensed surplus lines brokers, not the insurer's domicile classification.
- C) A foreign insurer is organized under the laws of another state or jurisdiction of the United States.
- D) An alien insurer is organized under the laws of a country other than the United States.
Memory hook
Chartered in Texas means domestic, every time.