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 domiciled in another state that has not received a license from the insurance commissioner to do business in this state is classified as a foreign non-admitted company.
A) Alien non-admitted company.
An alien non-admitted company refers to an insurance company that is domiciled outside of the United States and has not been admitted to operate in a specific state. Since the question specifies a company domiciled in another state, this option is not applicable.
B) Domestic admitted company.
A domestic admitted company is one that is incorporated and licensed to do business in the state in question. This option is incorrect because the question specifies a company that has not received a license to operate in the state.
C) Foreign admitted company.
A foreign admitted company is one that is licensed to operate in a different state from where it is domiciled. This option is incorrect as it contradicts the premise of the question regarding lack of a license.
D) Foreign non-admitted company.
This option accurately describes a company that is based in another state and has not obtained the necessary license from the insurance commissioner to do business in the specified state. This aligns perfectly with the definition provided in the question.
Conclusion
The correct answer is D, as it precisely identifies the status of a company that is based in another state without the requisite licensing. All other options misinterpret the criteria of being either admitted or incorrectly categorize the company’s domicile status. Understanding these classifications is crucial for proper regulatory compliance in the insurance industry.