What does it mean if an insurer is described as "Alien"?

An insurer described as "alien" refers to a company that is incorporated in a foreign country and operates within the U.S. market. This classification distinguishes such companies from domestic insurers, which are based in the U.S., and from foreign insurers, which are based in one state and operate in another. The term "alien" highlights that the company originates from outside the United States, meaning it may have different regulatory requirements, business practices, and cultural insights that affect how they provide insurance products and services in the domestic marketplace.

Understanding this definition is crucial in the context of insurance law and regulation, as it informs how these insurers must comply with U.S. regulations and allows for proper categorization of insurers in terms of their operational jurisdiction. Groups that may believe they cater to international clients or only their home state do not accurately reflect the critical international component that the term "alien" embodies.