New York State Life Insurance Exam Questions Practice Question
A company that is authorized to do business in a state is
Correct Answer: A
Rationale: An entity that is authorized to conduct business in a state is referred to as "admitted." This status signifies that the company has met all regulatory requirements to operate legally within that jurisdiction.
Option B, "domestic," describes a company incorporated in the same state where it operates, which does not apply if the company is from another state. Option C, "foreign," refers to a company operating in a state different from where it was incorporated, thus not fitting the definition of being authorized within that state. Option D, "mutual," pertains to a type of insurance company owned by its policyholders, which is unrelated to the authorization status in a state.
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