California Life and Health Insurance Practice Exam

In California, an insurer organized under the laws of Oregon is referred to as a(n)?

1. Domestic insurer

2. Foreign insurer

3. Alien insurer

4. National insurer

The correct answer is: Foreign insurer

In California, an insurer organized under the laws of another state, such as Oregon, is identified as a foreign insurer. This classification indicates that while the insurer is licensed to operate in California, its home base or organizational structure is situated outside of California's jurisdiction. In the context of insurance terminology, a "domestic insurer" refers specifically to insurers that are chartered or organized within the state in question, which, in this case, would pertain to insurers that are established in California. Conversely, an "alien insurer" typically refers to an insurer that is organized under the laws of another country, rather than another U.S. state. The term "national insurer" is not commonly used in this context and does not specifically relate to the state-level classification. Therefore, referring to an insurer from Oregon as a foreign insurer is accurate and aligns with the definitions established in insurance regulatory practices.