If an insurance company is organized under the laws of New Jersey and licensed to do business here, it is considered a _____ in Texas.

• A. Domestic company
• B. Foreign company
• C. Admitted company
• D. Non-admitted company

Answer: (B)

In Texas, insurers are classified by where they’re organized. A company organized under the laws of another state is considered foreign in Texas. Since this company is organized in New Jersey, it is foreign in Texas. Being licensed to do business in Texas means it is admitted to transact there, which is a regulatory status separate from its domicile. A domestic company would be one formed in Texas, and the terms admitted vs non-admitted describe authorization, not where the company is organized.