Insurers are classified according to their domicile. What are the three types of insurers?

Insurers are classified by their domicile based on where they are established and operate. The three types of insurers are categorized as domestic, foreign, and alien.

A domestic insurer is one that is incorporated in the state where it is conducting business. For instance, if an insurance company is incorporated in Ohio, it is considered a domestic insurer in Ohio.

A foreign insurer operates in a different state from where it is incorporated. For example, if an insurance company is incorporated in New York but sells policies in Ohio, it is classified as a foreign insurer in Ohio.

An alien insurer is one that is incorporated outside the United States. This classification is used to identify companies that may operate in the U.S. but are based in other countries.

This classification system helps in understanding the jurisdictional regulatory aspects and the financial oversight required for each type of insurer. It provides clarity about the operational scope and the regulatory framework that governs them.