Which statement best describes a foreign title insurance company?

Which statement best describes a foreign title insurance company?

• A. A company formed in Colorado
• B. A company formed in another state
• C. A company that insures only life policies
• D. A company that handles zoning compliance

Answer: (B)

The key idea is how title insurers are classified by where they’re formed. A foreign title insurance company is one that was formed under the laws of a state other than Colorado, so it operates in Colorado as a foreign insurer. That’s why this option fits best. A company formed in Colorado would be domestic, not foreign. A company that insures only life policies isn’t providing title insurance, and a firm that handles zoning compliance isn’t in the title insurance business.

The key idea is how title insurers are classified by where they’re formed. A foreign title insurance company is one that was formed under the laws of a state other than Colorado, so it operates in Colorado as a foreign insurer. That’s why this option fits best. A company formed in Colorado would be domestic, not foreign. A company that insures only life policies isn’t providing title insurance, and a firm that handles zoning compliance isn’t in the title insurance business.