Section 3 - Insurer Types

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o domestic o foreign o alien o authorized vs unauthorized insurers o stock vs mutual please

Last updated 7:38 AM on 5/23/26
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52 Terms

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1. What is a domestic insurer?
An insurer formed under the laws of Washington
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2. What is a foreign insurer?
An insurer formed under the laws of another state
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3. What is an alien insurer?
An insurer formed under the laws of another country
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4. A company incorporated in Oregon and doing business in Washington is considered what type of insurer?
Foreign insurer
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5. A company incorporated in Canada and doing business in Washington is considered what type of insurer?
Alien insurer
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6. A company incorporated in Washington is considered what type of insurer in Washington?
Domestic insurer
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7. What is an authorized insurer?
An insurer with a Certificate of Authority to conduct business in Washington
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8. What is an unauthorized insurer?
An insurer without a Certificate of Authority in Washington
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9. What document allows an insurer to legally transact insurance in Washington?
Certificate of Authority
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10. Can an unauthorized insurer legally transact insurance in Washington?
No
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11. Who issues a Certificate of Authority?
The Insurance Commissioner
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12. What is a stock insurance company?
A company owned by shareholders
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13. What is a mutual insurance company?
A company owned by policyowners
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14. Who receives dividends in a mutual insurance company?
Policyowners
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15. Who owns a stock insurance company?
Shareholders
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16. What is the primary goal of a stock insurer?
To earn profits for shareholders
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17. What is the primary goal of a mutual insurer?
To provide insurance for policyowners
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18. Can a mutual insurer pay dividends to policyowners?
Yes
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19. Can a stock insurer pay dividends to shareholders?
Yes
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20. What type of insurer is formed under Washington law?
Domestic insurer
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21. What type of insurer is formed under another state's laws?
Foreign insurer
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22. What type of insurer is formed under another country's laws?
Alien insurer
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23. What is another term for an authorized insurer?
Admitted insurer
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24. What is another term for an unauthorized insurer?
Nonadmitted insurer
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25. Must all insurers operating in Washington comply with Washington insurance laws?
Yes
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26. Can a foreign insurer legally operate in Washington with a Certificate of Authority?
Yes
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27. Can an alien insurer legally operate in Washington with a Certificate of Authority?
Yes
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28. What determines whether an insurer is domestic, foreign, or alien?
Where the insurer is incorporated
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29. A Washington insurer operating in California is considered what in California?
Foreign insurer
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30. A Canadian insurer operating in Washington is considered what?
Alien insurer
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31. What type of insurer is owned by policyholders?
Mutual insurer
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32. What type of insurer is owned by stockholders?
Stock insurer
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33. What is required before any insurer can transact business in Washington?
Certificate of Authority
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34. Who regulates authorized insurers in Washington?
The Insurance Commissioner
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35. Can unauthorized insurers advertise freely in Washington?
No
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36. What is the purpose of a Certificate of Authority?
To authorize an insurer to conduct insurance business legally
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37. What is an admitted insurer?
An insurer authorized to do business in the state
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38. What is a nonadmitted insurer?
An insurer not authorized to do business in the state
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39. Do policyowners own stock insurance companies?
No
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40. Do shareholders own mutual insurance companies?
No
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41. Which insurer type generally pays dividends to shareholders?
Stock insurer
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42. Which insurer type may return excess premiums to policyowners as dividends?
Mutual insurer
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43. Can a company be both foreign and authorized in Washington?
Yes
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44. Can a domestic insurer also be authorized?
Yes
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45. Can a foreign insurer be unauthorized?
Yes
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46. Can an alien insurer be unauthorized?
Yes
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47. What is the home state of a domestic insurer?
The state where it is incorporated
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48. What is meant by insurer domicile?
The state or country where the insurer is formed
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49. Why are insurers classified as domestic, foreign, or alien?
To determine regulatory jurisdiction
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50. Who examines authorized insurers operating in Washington?
The Insurance Commissioner
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51. How often must admitted insurers be examined in Washington?
At least every 5 years
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52. What happens if an insurer operates without a Certificate of Authority?
It is considered unauthorized