In Texas terminology, what term is used for an insurer formed outside the state but authorized to do business in Texas?

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

Answer: (C)

In Texas terminology, an insurer formed outside the state but authorized to transact business there is a foreign company. The term foreign describes where the company was formed (outside Texas). If it also has a Texas certificate of authority, it’s an admitted foreign insurer. Domestic would be formed in Texas, and non-admitted means not authorized to transact insurance in Texas (often limited to surplus lines).