State RegulationsTX specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An insurer chartered under the laws of Ohio applies to do business in Texas. Under TIC 841.001, how is the insurer classified?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 841.001(5), a foreign company is a life, accident, or health insurance company organized under the laws of another state, so a company chartered in Ohio is foreign in Texas. This remains true after the company receives its Texas certificate of authority. Practically, the certificate changes what the company may do — it may now transact insurance here — but it does not change what the company is: it continues to be regulated as a foreign insurer and must maintain its Texas authority, deposits, and filings on that basis.
Why the other options are wrong
- B) Alien is reserved for insurers organized under the laws of a country outside the United States; an Ohio company is organized in another state, not another country.
- C) A certificate of authority grants permission to transact business in Texas; it does not reclassify the insurer's domicile.
- D) Once authorized, the company is an admitted or authorized insurer, not a surplus lines insurer; surplus lines refers to unauthorized insurers used under that chapter.
Memory hook
Another state means foreign; another country means alien.