75. A company domiciled in another state that has NOT received a license from the insurance commissioner to do business in this state is called a/an
Answer: D
A foreign non-admitted company.
A company that is domiciled in another state and has not received a license from the insurance commissioner to operate in the local state is referred to as a foreign non-admitted company.
A) Alien non-admitted company.
This option is incorrect because an alien company is one that is based outside the country, not just outside the state. The term does not apply to companies from other states within the same country.
B) Domestic admitted company.
This choice is incorrect as it describes a company that is incorporated and licensed to do business within the same state. Thus, it does not fit the description given in the question.
C) Foreign admitted company.
This option is also incorrect because a foreign admitted company refers to an entity from another state that has obtained the necessary licensing to operate within the state, which contradicts the requirement of not having a license.
D) Foreign non-admitted company.
This choice is correct, as it accurately describes a company that is based in another state and has not secured the required license to operate in the local jurisdiction, aligning perfectly with the question's criteria.
Conclusion
The correct answer, a foreign non-admitted company, signifies an entity that operates across state lines without proper authorization, which is crucial in understanding insurance regulations. The other options fail to match the definition provided, either by being licensed or by referring to a company outside the country.