Pennsylvania Life and Health Insurance Exam Practice Question

Which term describes an insurer operating in the state in which it is incorporated?

Correct Answer: A

Rationale: A: Domestic refers to an insurer that operates in the state where it is incorporated, reflecting its local presence and adherence to state regulations.

B: Foreign describes an insurer that operates in a state different from where it was incorporated, indicating cross-state operations rather than local presence.

C: Alien refers to an insurer incorporated outside the United States, emphasizing its international status rather than its domestic operations.

D: Admitted pertains to an insurer that has received authorization to operate in a specific state, but does not specify the insurer's incorporation location.

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