State RegulationsTX specificDifficulty 1/5
A life insurance company organized under the laws of Illinois is authorized to write life insurance in Texas. Under TIC 841.001, how is it classified?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
TIC 841.001(5) defines a foreign company as a life, accident, or health insurance company organized under the laws of another state, while subsection (2) defines an alien company as one organized under the laws of a foreign country and subsection (4) defines a domestic insurance company as one organized under the laws of this state. Chapter 841, which governs life, health, and accident insurers, supplies these definitions for the other laws listed in TIC 841.002.
Why the other options are wrong
- A) Domestic means organized under the laws of this state, which is not true of an Illinois company.
- C) Alien is reserved for companies organized under the laws of a foreign country.
- D) The company is authorized, since the question states it holds authority to write in Texas.
Memory hook
Texas-born is domestic, other state is foreign, other country is alien.