What defines a foreign insurer?

A foreign insurer is specifically defined as an insurance company that is incorporated in a different state from where it is conducting business. This definition is crucial to understanding how insurance companies operate across different jurisdictions within a country, particularly in the United States, where each state has its own regulatory framework.

When an insurer is based in one state but sells insurance in another, it must typically obtain a license to operate in that state. This concept is distinct from the terms “domestic” and “alien” insurers, where a domestic insurer is one that is incorporated in the state it is operating, and an alien insurer refers to one that is incorporated outside of the United States altogether.

Therefore, identifying a foreign insurer as one incorporated in a different state provides clarity on its regulatory status and the need for licensure in multiple states, making “incorporated in a different state” a critical aspect of its definition.