What is the term for an insurance company incorporated outside of the United States?

The term for an insurance company incorporated outside of the United States is referred to as an "alien insurer." This classification is specific to the context of insurance regulation in the U.S., where companies are categorized based on their incorporation location relative to state lines. An alien insurer is one that operates in the U.S. but is formed under the laws of a foreign country.

This distinction is important because it helps differentiate the regulatory environment these insurers operate under. Alien insurers must comply with the regulations set forth by the states where they conduct business, ensuring that they meet certain financial and operational standards to protect policyholders.

Understanding the classification helps agents clarify to clients how insurers from different jurisdictions might impact their insurance products and claim processes. For instance, an alien insurer may have different foreign qualifications and regulatory requirements than domestic or foreign insurers, which can influence the coverage terms available to consumers.