An insurer that operates within the jurisdiction where it is incorporated is known as what?

A domestic insurer refers to an insurance company that is incorporated in and operates within the same state or jurisdiction. This means that the insurer is subject to the regulations, laws, and taxation of the state in which it is incorporated.

For example, if an insurance company is chartered in New Jersey and provides insurance services within New Jersey, it would be classified as a domestic insurer. This designation is crucial because it determines the regulatory environment the insurer must adhere to, including solvency requirements and consumer protection laws.

On the other hand, the other types of insurers typically operate across state or national borders, which is not the case with a domestic insurer. A foreign insurer operates in states other than where it was incorporated, while an alien insurer refers to a company that is incorporated outside of the United States but does business within the country. A mutual company, while it can be a domestic, foreign, or alien insurance company, is defined more by its ownership structure rather than its operational jurisdiction.