Which statement best describes a New Jersey insurance company chartered and domiciled in NJ?

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Multiple Choice

Which statement best describes a New Jersey insurance company chartered and domiciled in NJ?

Explanation:
The key idea is how insurers are categorized by where they’re chartered and whether they’re licensed to operate in a state. A company chartered and domiciled in New Jersey is a domestic insurer there. To transact insurance in the state, it must be admitted (licensed) and authorized. So a New Jersey–domiciled insurer that is properly licensed to do business in New Jersey is best described as domestic, admitted, and authorized. If it had been chartered elsewhere, it would be foreign; if it weren’t licensed to operate, it would be non-admitted.

The key idea is how insurers are categorized by where they’re chartered and whether they’re licensed to operate in a state. A company chartered and domiciled in New Jersey is a domestic insurer there. To transact insurance in the state, it must be admitted (licensed) and authorized. So a New Jersey–domiciled insurer that is properly licensed to do business in New Jersey is best described as domestic, admitted, and authorized. If it had been chartered elsewhere, it would be foreign; if it weren’t licensed to operate, it would be non-admitted.

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