Vanguard Aerospace, a commercial aviation contractor based in Texas, requires specialized liability coverage that standard insurers will not underwrite. Their broker procures a policy through Kensington Global, an insurance entity incorporated and headquartered in London, England. Kensington Global is owned entirely by its participating policyholders and is not licensed by the Texas Department of Insurance, though it is legally permitted to write this coverage as an approved surplus lines carrier. Based on these characteristics, how is Kensington Global classified from the regulatory perspective of Texas?
- An alien, non-admitted, mutual insurerCevap
- BAn alien, non-admitted, stock insurer
- CA foreign, non-admitted, mutual insurer
- DAn alien, admitted, mutual insurer
Cevap
An alien, non-admitted, mutual insurer
The correct answer accurately combines the three dimensions of insurer classification based on the scenario. Because Kensington Global is incorporated outside of the United States (in England), it is classified as an alien insurer. Because it is owned by its participating policyholders, it is a mutual insurer. Finally, because it operates without a standard license from the state department of insurance (acting as an approved surplus lines carrier), it is considered a non-admitted or unauthorized insurer.
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Insurer Classification (Domicile, Ownership, and Authority)