Which type of insurer is formed under the laws of a specific state?

A domestic insurer is one that is formed under the laws of a specific state in which it operates. This means that it is chartered and regulated according to the statutes and regulations of that particular state, and it is subject to that state’s insurance commissioner oversight. By being classified as a domestic insurer, it can offer products and services in that state according to the legal framework that governs its operations.

In contrast, a foreign insurer is one that is licensed to operate in a state but was incorporated or formed in another state. An alien insurer operates in the U.S. but is incorporated in another country. Non-admitted insurers refer to those that are not licensed to conduct business in a state; they can provide coverage under certain circumstances but typically do not have the same regulatory oversight as admitted insurers. Therefore, the specific designation of a domestic insurer is crucial for understanding the relationship between the insurer and the regulatory environment of the state in which it operates.