If an insurance company is incorporated in another state, what is it classified as?

When an insurance company is incorporated in a state that is different from the state in which it is conducting business, it is classified as a foreign insurer. This classification is used to denote that the insurer is doing business outside of its state of incorporation.

A foreign insurer operates under the specific regulations and licensing requirements of the state it is operating in, even though it is not incorporated there. This distinction is important in the context of state insurance regulation, as different states may have different rules governing the operations of insurers.

In the United States, an insurer is categorized as a domestic insurer if it is incorporated in the state where it is conducting business. An alien insurer, on the other hand, refers to an insurance company that is incorporated in another country. The term stock company relates to the ownership structure of an insurer (i.e., whether it is owned by shareholders) rather than its incorporation status. Therefore, the classification of a foreign insurer accurately captures the relationship between the state of incorporation and the operational state.