Which statement about Domestic Insurer is true?

• A. It is domiciled in the same state as its principal place of business
• B. It is domiciled in a foreign country
• C. It is a foreign insurer
• D. It is a mutual insurer

Answer: (A)

A domestic insurer is formed and regulated under the laws of the state where it conducts its business, with its home office in that same state. That’s why the true statement is that it is domiciled in the same state as its principal place of business. This distinguishes it from a foreign insurer, which is organized in another state, and from an alien insurer, which comes from another country. Ownership type like mutual vs stock does not determine domestic status; a mutual insurer can be domestic if it’s chartered in that state.