P&CIllinoiseasy
An insurer incorporated under the laws of Wisconsin and licensed to transact business in Illinois is classified under the Illinois Insurance Code as which type of insurer with respect to Illinois?
ADomestic
BAlien
Foreign
DReciprocal
Why this is the answer
Section 2.1 of the Illinois Insurance Code classifies insurers by their state of domicile relative to Illinois. A 'domestic' insurer is one organized under Illinois law. A 'foreign' insurer is organized under the laws of another U.S. state — Wisconsin in this question. An 'alien' insurer is organized under the laws of a country other than the United States, such as Lloyd's syndicates or Bermuda-based reinsurers. Reciprocal describes a structure (unincorporated exchange of contracts), not domicile.
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