State RegulationsTX specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A life insurance company is organized under the laws of Texas. Under TIC 841.001, how is this insurer classified in Texas?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under TIC 841.001(4), a domestic insurance company is one organized under the laws of this state, so a company chartered in Texas is domestic in Texas. Domicile depends solely on the place of organization. Practically, the classification determines which provisions of the Insurance Code govern the company's formation, corporate governance, and supervision, and it never changes based on where the company markets its policies or collects its premiums.
Why the other options are wrong
- A) A foreign insurer is one organized under the laws of another state of the United States, which does not describe a company chartered in Texas.
- B) An alien insurer is one organized under the laws of a country other than the United States, which does not describe a Texas-chartered company.
- D) Surplus lines describes a method of placing coverage with an unauthorized insurer; it is not a domicile classification.
Memory hook
Chartered in Texas means domestic, no matter where the policies are sold.