An insurer that is based outside the U.S. but operates within the country is known as what?

An insurer that is based outside the United States and operates within the country is identified as an alien insurer. This term is specifically used in the insurance industry to designate insurance companies that are chartered in another country but conduct business within U.S. states. For example, a Canadian insurance company providing coverage in California would be termed an alien insurer in that context.

The classification helps distinguish between different types of insurers based on their location of incorporation and operational reach. Domestic insurers are those that are incorporated within the same state where they operate, while foreign insurers are those that are incorporated in a different state but within the U.S. Surplus lines insurers, on the other hand, refer to those that offer coverage not readily available from licensed carriers in the state, often in high-risk environments. Each term serves to clarify the nature and regulatory framework governing the insurer's operations.