Insurance companies that operate outside the United States are known as what?

Insurance companies that operate outside the United States are referred to as alien insurers. This classification is based on the regulatory perspective that distinguishes between the geographic location of the insurer’s incorporation relative to the state in which they are operating. An alien insurer is defined as one that is incorporated in a different country from the state where it is doing business.

Understanding this term is essential, as it is rooted in the legal framework that governs insurance operations in the U.S. Domestic insurers are those incorporated within the state they operate in, while foreign insurers refer to companies that are incorporated in another U.S. state but operate within a particular state. Non-resident insurers is a less formal term and does not specifically denote the country of incorporation, making “alien insurers” the correct terminology to describe foreign (non-U.S.) insurance companies. This classification helps regulators impose the appropriate rules and requirements on these insurers based on their operational jurisdiction.