How are insurers classified according to their domicile?

Insurers are classified according to their domicile as Domestic, Foreign, and Alien based on where they are incorporated and where they do business.

A Domestic insurer is one that is incorporated in the state in which it is doing business. For instance, if an insurance company is formed under Ohio state laws and operates within Ohio, it is classified as domestic to Ohio.

A Foreign insurer refers to an insurance company that is incorporated in a different state than the one in which it is selling insurance. For example, an insurer that is incorporated in Michigan but is operating in Ohio would be considered foreign in Ohio.

An Alien insurer is a company that is incorporated and formed in a country outside of the United States. For example, a Canadian insurance company providing coverage in Ohio would be classified as an alien insurer in that state.

This classification helps in regulatory oversight and determining the legal requirements an insurer must meet based on where they are domiciled, ensuring that the appropriate licenses and adherence to state law are followed.