The correct answer is:
A. Domestic
Explanation:
1. A domestic insurance company is one that has been formed under the laws of a specific state within the United States.
2. This term is used to distinguish insurance companies that are incorporated in a particular state from those that are foreign (incorporated in a different state) or alien (incorporated outside the United States).
3. Therefore, when an insurance company is described as "domestic," it means it is registered and operating within the state in question, following the regulations and guidelines set forth by that state's insurance laws.