Which term describes an insurer organized and formed in Texas?

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

Answer: (A)

Organized and formed in the same state where it does business means it’s a domestic company. In Texas, an insurer that is created under Texas laws is described as domestic because its formation and incorporation occur within the state. A foreign company, by contrast, is one that’s formed in another state. Licensing status—admitted (authorized) vs non-admitted (unauthorized)—relates to whether the insurer has the state's certificate of authority to transact business, but the term described by being formed in Texas is domestic.