An alien insurer is an insurer that is headquartered outside the United States and does business in the United States. Which of the following describes an alien insurer?

• A. An insurer headquartered outside the United States
• B. An insurer headquartered in the United States
• C. An insurer that only operates in a single state
• D. An insurer organized as a nonprofit

Answer: (A)

In insurance terms, an alien insurer is one whose home office is outside the United States. That means the company is organized under laws of a country other than the U.S., even though it may do business in the U.S. by obtaining authorization to transact here. The key factor is the location of the insurer’s headquarters. The other details—being based in the U.S., operating only in one state, or being organized as a nonprofit—do not define alien status.