I laughed at that too. Every time I think that show has jumped the shark, they do something to make me want to continue to watch.
The joke reminded me of (maybe someone can remember the name of it) some comedy show that featured a family of dinosaurs. Dino suits worn by the actors. The father was a T-Rex. The big asteroid strike never occurred in their reality, so the Dinos had evolved to the same level as humans (sort of).
In one episode, their house is destroyed by a rock from space. The T-Rex father argues with the meteor insurance adjuster about it. The adjuster points out that it was a "meteorite" that had struck the house, not a meteor; and, therefore, the claim would not be paid. And if I remember correctly, he even points out that technically the house would have to be orbiting the planet for it to be covered.
This one?
That's it!
Man...that show was a lot funnier in my memory.
Anyway, I found the clip...