Which statement best defines a foreign insurer for regulatory purposes?

• A. An insurer formed under the laws of this state.
• B. An insurer formed under the laws of any state, district, territory, or commonwealth of the United States other than this state.
• C. An insurer not formed under U.S. law.
• D. An insurer that operates in foreign countries.

Answer: (B)

In regulatory terms, a foreign insurer is one that was formed under the laws of another U.S. jurisdiction—any state, district, territory, or commonwealth—different from the state where regulation is being applied. The important point is the place of incorporation or formation, not where the company does business or whether it operates abroad. So a company formed in another state would be considered foreign when it comes under the regulation of Florida. By contrast, an insurer formed under the laws of the regulating state is domestic, and an insurer not formed under U.S. law is alien. An insurer that operates in foreign countries describes its activities, not its regulatory classification within the United States.