CARD Q008
An insurer was formed under Oregon law and is authorized in Nevada. How is it classified in Nevada?
- Foreign and admitted
- Foreign and nonadmitted
- Domestic and admitted
- Alien and admitted
Foreign and admitted
Formation in another U.S. state makes it foreign in Nevada. Authorization makes it admitted. Domicile and authorization are separate classifications.
Why each choice is right or wrong
A. Foreign and admitted
Correct. Formation in another U.S. state makes it foreign in Nevada. Authorization makes it admitted. Domicile and authorization are separate classifications.
B. Foreign and nonadmitted
Incorrect. Nevada authorization makes the insurer admitted, not nonadmitted.
C. Domestic and admitted
Incorrect. Domestic classification would require formation under Nevada law.
D. Alien and admitted
Incorrect. Alien means formed under another country’s laws, not another U.S. state.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.