Which term best describes an insurer formed under the laws of another state and doing business in Louisiana?

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Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

Which term best describes an insurer formed under the laws of another state and doing business in Louisiana?

Explanation:
In this topic, insurers are classified by where they’re formed or chartered. If an insurer is formed under the laws of another state, it is considered a foreign insurer when it does business in Louisiana. Domestic insurers are formed under the laws of the state they operate in (Louisiana, in this case). Alien insurers are formed under the laws of a country outside the United States. Reinsurers are insurers that insure other insurers, not about domicile. So, an insurer formed under the laws of another state and doing business in Louisiana is best described as a foreign insurer.

In this topic, insurers are classified by where they’re formed or chartered. If an insurer is formed under the laws of another state, it is considered a foreign insurer when it does business in Louisiana. Domestic insurers are formed under the laws of the state they operate in (Louisiana, in this case). Alien insurers are formed under the laws of a country outside the United States. Reinsurers are insurers that insure other insurers, not about domicile.

So, an insurer formed under the laws of another state and doing business in Louisiana is best described as a foreign insurer.

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