What does a domestic insurer refer to?

A domestic insurer is defined as an insurance company that is incorporated and operates within the jurisdiction of its state of incorporation. This means it is licensed to conduct business in the state where it was established. Being recognized as a domestic insurer allows the company to be subject to the regulations and laws specific to that state. This designation helps ensure that the insurer follows the state's legal standards and obligations, such as maintaining reserves and capital requirements.

In contrast, an insurer incorporated outside the United States would be considered a foreign insurer within the U.S., and an insurer incorporated in a different state from where it is doing business would also be classified as a foreign insurer in the state where it operates. Similarly, an insurer not licensed to operate in a state does not qualify as a domestic insurer, as it doesn't meet the essential requirement of being authorized to conduct insurance business in its state of incorporation.