An insurer incorporated outside the United States is called what?

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Multiple Choice

An insurer incorporated outside the United States is called what?

This question tests how insurers are categorized by where they’re incorporated. An insurer is domestic in the state where it’s formed, foreign if it’s formed in another state, and alien if it’s formed outside the United States. Since this insurer is incorporated outside the United States, the correct term is alien insurer. A reinsurer is a different concept—it's an insurer that provides coverage to other insurance companies, not a matter of where it’s incorporated. For example, a company formed in Canada that sells policies in the U.S. is an alien insurer.

This question tests how insurers are categorized by where they’re incorporated. An insurer is domestic in the state where it’s formed, foreign if it’s formed in another state, and alien if it’s formed outside the United States. Since this insurer is incorporated outside the United States, the correct term is alien insurer. A reinsurer is a different concept—it's an insurer that provides coverage to other insurance companies, not a matter of where it’s incorporated. For example, a company formed in Canada that sells policies in the U.S. is an alien insurer.

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