What is a Foreign Insurer?

A Foreign Insurer refers specifically to an insurance company that is incorporated in a state different from the one where it is operating. In the context of U.S. insurance regulation, if an insurance company is based in one state and is licensed to operate in another, it is considered a foreign insurer in the latter state.

For example, if a company is incorporated in New York and sells insurance in Florida, it would be classified as a foreign insurer in Florida. This designation helps to distinguish between domestic insurers, which are incorporated within the same state as their operations, and foreign insurers, which are from other states.

The other options do not accurately define a Foreign Insurer. An insurer incorporated in Florida is a domestic insurer. While an insurer that operates in multiple countries could be referred to as a multinational insurer, this does not specifically relate to the definition of a Foreign Insurer within the context of U.S. insurance practice. Therefore, the choice that correctly identifies a Foreign Insurer is one that focuses on the distinction of state incorporation rather than broader geographic operations.