State RegulationsGA specificDifficulty 1/5
An insurance company is organized under the laws of another state but is licensed to sell policies in Georgia. Under Georgia insurance law, the company is classified as a(n):
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under O.C.G.A. § 33-3-1, an insurer organized under the laws of another state or territory of the United States is a foreign insurer. A company organized in Georgia is domestic, and one organized under the laws of another country is alien — the classification follows where the company was formed, not where it sells.
Why the other options are wrong
- A) Domestic status applies only to companies organized under Georgia law.
- B) Alien status applies to companies organized under the laws of another country, not another state.
- D) Reciprocal describes an ownership and exchange structure, not the domicile classification.
Memory hook
Foreign = another state; alien = another country; domestic = Georgia.