Connecticut WC Insurance School Practice Test

In the context of insurance classification, a company’s designation as "domestic," "foreign," or "alien" depends on its chartering and operational jurisdiction relative to the state in which it is conducting business.

An insurer that is chartered in a Canadian province and operates in Minnesota is classified as an "alien" insurer. This term indicates that the insurer is incorporated or organized under the laws of a foreign country (in this case, Canada) rather than within the United States. Thus, when referring to its operations in Minnesota, the company is not considered domestic (which would mean it was chartered in Minnesota), nor is it foreign (a term generally used for insurers chartered in another state within the U.S.).

In summary, "alien" signifies that the insurer is operating in a different national jurisdiction compared to where it is legally formed, making it the correct classification for the scenario described.