Pennsylvania Life and Health Insurance Exam Practice Question
When an insurance company, licensed in another state, is also licensed in your state, it is considered:
Correct Answer: B
Rationale: An insurance company licensed in another state is classified as a **foreign** insurer in your state. This designation reflects its origin outside the state while still being authorized to operate there.
**Option A: Alien** refers to companies incorporated outside the U.S., making it incorrect for a company licensed in another state.
**Option C: Domestic** applies to companies incorporated within your own state, which does not fit here.
**Option D: Fraternal** pertains to organizations that provide insurance primarily for their members, not relevant in this context. Thus, the designation of foreign accurately describes the situation.
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