Question

The Excalibur Insurance Company, domiciled in Iowa, transacts business legally in Nebraska. In Nebraska, Excalibur is a(n):

Answer 1

Answer:

C. foreign insurance company

Explanation:

• In the US, an insurance company that operates in other states through agents is called a foreign insurance company . These companies are incorporated from another home-state but can legally operate in other states as well.
• The Excalibur Insurance Company, domiciled in Iowa, transacts business legally in Nebraska. In Nebraska, Excalibur is a foreign insurance company.
• It is because the Excalibur Insurance Company is incorporated in Iowa so it becomes a foreign company in Nebraska.