What is an alien insurer?

An alien insurer is defined as an insurance company that is incorporated outside the United States. This means that the company is established and regulated under the laws of another country but may conduct business in the U.S. or other markets. The classification of insurers helps clarify their regulatory requirements and operational scope, establishing where they are legally based and how they are governed.

For example, if a company is based in Canada and operates in various states in the U.S., it is considered an alien insurer because its incorporation is not within the U.S. jurisdiction. This distinct category is important as the rules and regulations applicable to these insurers may differ significantly from those governing domestic (U.S.-based) insurers, which are usually subject to state laws where they operate. The definition clearly sets it apart from other types of insurers, such as domestic insurers, which are incorporated in the U.S., and foreign insurers, which are incorporated in another U.S. state.