An insurer incorporated in New York is domestic to which state?

An insurer incorporated in New York is domestic to which state?

• A. California
• B. Texas
• C. New York
• D. Florida

Answer: (C)

In insurance terminology, a domestic insurer is one that is organized under the laws of the state in which it operates. If an insurer is incorporated in New York, it is domestic to New York. It would be foreign to other states such as California, Texas, or Florida, because those states would view the insurer as organized outside their own laws. The state of incorporation defines where the insurer is considered domestic.

In insurance terminology, a domestic insurer is one that is organized under the laws of the state in which it operates. If an insurer is incorporated in New York, it is domestic to New York. It would be foreign to other states such as California, Texas, or Florida, because those states would view the insurer as organized outside their own laws. The state of incorporation defines where the insurer is considered domestic.