Which type of insurer is referred to as an alien insurer?

An alien insurer is defined as an insurance company that is incorporated and operates in a country different from where it is being sold or where it is providing coverage. This term specifically relates to the jurisdiction where the insurer is licensed to conduct business, which can often lead to complexities in regulation and oversight when it comes to policies written across borders.

In this context, the correct choice highlights that an alien insurer conducts operations outside its home country, effectively distinguishing it from domestic and foreign insurers. Domestic insurers operate within their home jurisdiction, while foreign insurers are incorporated in a different state within the same country but do not extend to international operations.

Being aware of these distinctions is crucial, especially in surplus lines insurance, where the nature of the risk may lead insurers to operate in multiple jurisdictions. Understanding the terminology will help in identifying the correct regulatory requirements for different types of insurers.