What term describes an insurance company that operates under the laws of the same state where it is incorporated?

The term that describes an insurance company operating under the laws of the same state where it is incorporated is "Domestic." In the context of insurance, a domestic insurer is one that is incorporated in the state where it conducts its business and is subject to the state’s insurance regulations. This designation signifies that the company adheres to the local laws and regulations governing insurance practices in that particular state.

Understanding this term is particularly important for recognizing how home state regulations influence the operations of insurance companies, including licensing requirements, solvency standards, and the types of products that can be offered. In contrast, an insurer designated as "Foreign" operates in states outside of its state of incorporation, while "Alien" refers to carriers incorporated outside of the United States. "Multinational" typically describes companies operating in multiple countries but does not specifically indicate their domestic status within a state.