Which term describes a company chartered in another country?

Which term describes a company chartered in another country?

• A. Domestic
• B. Foreign
• C. Alien
• D. Not regulated

Answer: (C)

The right term is alien. In insurance terminology, a company chartered in a country other than the United States is described as an alien insurer. The categories within the U.S. distinguish by where the insurer is incorporated: domestic refers to being incorporated in the same state where it operates, foreign refers to being incorporated in a different U.S. state, and alien refers to being incorporated outside the United States. Since the charter location is another country, alien is the precise label.

The right term is alien. In insurance terminology, a company chartered in a country other than the United States is described as an alien insurer. The categories within the U.S. distinguish by where the insurer is incorporated: domestic refers to being incorporated in the same state where it operates, foreign refers to being incorporated in a different U.S. state, and alien refers to being incorporated outside the United States. Since the charter location is another country, alien is the precise label.