Washington Life Producer Practice Exam

What defines a foreign insurance company doing business in Washington?

1. Chartered in Washington

2. Formed under Washington laws

3. Established in another country

4. Formed under the laws of another state

The correct answer is: Formed under the laws of another state

A foreign insurance company referred to in this context is one that is formed under the laws of another state, rather than in Washington itself. This means that a company can be chartered and operate as an insurance provider in Washington, while originally being established and regulated by the laws of a different state. The distinction is important because it defines the operational parameters for insurance companies entering Washington's insurance market, allowing them to offer products and services to consumers in the state while adhering to state regulations applicable to out-of-state businesses. The definition does not include companies chartered in Washington, as these would be considered domestic insurers. Similarly, a company formed under Washington laws would also fall under the domestic category. While a company established in another country may qualify as a foreign company in a broader sense, the specific term 'foreign insurance company' in relation to the context of Washington insurance laws primarily pertains to those established in another state within the U.S.