Foreign, Domestic, Alien ***

MR. WATSON: Foreign, Domestic, Alien. What does domiciled mean? It means not where you live but where are you incorporated. New York Life, where are they incorporated?

STUDENT: New York.

MR. WATSON: Does New York Life sell insurance in New York? Yes. Because they are domiciled and sell insurance in the same state, so in New York they are known as a domestic company . But does New York Life sell insurance in Florida? Yes. So in Florida, because they are domiciled somewhere else, they are known as a foreign company . If they are outside -- if the company is domiciled outside the United States, its territories or possessions, it's an alien company . ET, phone home.

STUDENT: Could you say that again, please?

MR. WATSON: ET, phone home.

STUDENT: No, the other.

MR. WATSON: Last Chance of Tampa, a company headquartered in Florida -- what are they known as?

STUDENTS: Domestic.

MR. WATSON: New Mexico Life is headquartered in New Mexico and selling insurance in Florida - domestic or foreign?

STUDENTS: Foreign.

MR. WATSON: What about Mexico Life?

STUDENTS: Alien.

MR. WATSON: What about Puerto Rico?

STUDENT: Foreign.

MR. WATSON: If it's outside the United States, its territories or possessions, it would be Alien. Puerto Rico is a territory, so it would be treated like a state, making the company Foreign.

MR. WATSON: What about Alabama?

STUDENT: That's foreign.

MR. WATSON: Don't be knocking Alabama. What about New Mexico?

STUDENT: Foreign

STUDENT: So Puerto Rico is --?

MR. WATSON: Foreign.

STUDENT: Why again?

MR. WATSON: Because it's a territory. Any Puerto Ricans in here? It's a territory.

STUDENT: Why is Mexico Alien then?

MR. WATSON: Mexico is its own country. What I said earlier is New Mexico. Do you understand? New Mexico is a state.

STUDENT: State is foreign.

MR. WATSON: Exactly. Mexico is a country. So it's --

STUDENT: Alien.

MR. WATSON: Guys, that's why I don't ask you about Alabama, because you automatically know it's a state. But New Mexico, the reason I ask you like that is to get you confused. Everybody okay on this foreign, domestic and alien deal?

STUDENTS: Yes.