In Texas, an insurer domiciled in Ohio and admitted to do business in Texas is considered what in Texas?

• A. Domestic insurer in Texas
• B. Foreign insurer in Texas
• C. Alien insurer in Texas
• D. Nonadmitted insurer in Texas

Answer: (B)

In Texas, insurers are classified by where they are organized (domiciled) and whether they are admitted to transact business in the state. A domestic insurer is formed under Texas law, while a foreign insurer is formed outside Texas (in another state) but has been admitted to do business in Texas. An alien insurer is organized under the laws of a country outside the United States, and a nonadmitted insurer is not licensed to operate in the state.

Here, the insurer is domiciled in Ohio (outside Texas) but has been admitted to do business in Texas. That makes it a foreign insurer in Texas. It’s not domestic because it’s not organized in Texas, not alien because it’s not organized under a foreign country’s laws, and not nonadmitted because it is authorized to operate in Texas.