What type of insurance company operates in Alabama but was created in Florida?

A company classified as "foreign" operates in a state other than its state of incorporation. In this case, since the insurance company was created in Florida but is operating in Alabama, it is termed a foreign company in the context of Alabama. Each state regulates insurance companies that operate within its borders, and a company’s designation depends on where it was established.

In this scenario, if a company is incorporated in Florida and selling insurance in Alabama, it would be subject to Alabama’s regulations but still retains its status as a foreign company since its origin is from another state. Domestic companies are those that are incorporated in the state where they operate, and alien companies refer to those formed under the laws of another country. Therefore, understanding the definitions of these classifications reveals why "foreign" is the accurate choice here.