What is an insurer based outside the U.S. called?

An insurer based outside the U.S. is termed an alien insurer. This classification is specifically used in the context of the insurance industry to denote companies that are incorporated and operate under the laws of another country, rather than the United States. It differentiates these insurers from domestic insurers, which are those that operate within the state in which they are incorporated, and foreign insurers, which are based in a different U.S. state but still operate within the U.S.

Understanding this terminology is crucial when dealing with various insurance regulations and practices, especially when it comes to international insurance dealings and ensuring compliance with state insurance laws. An alien insurer must abide by the regulations set forth by the states in which they conduct business in the U.S., which can differ significantly from the regulations in their home jurisdictions. This classification helps consumers, regulators, and other stakeholders identify the operations and regulatory expectations that apply to different types of insurers.