Alien Insurer


DEFINITION of 'Alien Insurer'

An insurer that is formed following the laws of one country and offers insurance or reinsurance in another country. For example, an insurer that is formed under the laws of Germany that wishes to offer insurance in the United States is an alien insurer. The company would have to conform to the rules and regulations of each state in which it plans to provide insurance services.

Also called "alien company".

BREAKING DOWN 'Alien Insurer'

A United States company offering coverage abroad would also be an alien insurer. An alien insurer is any insurer that is formed in a country foreign to where some or all of its business will be conducted. Regardless of where the insurer is located, it must follow the rules and regulations governing insurance practices in each locale where services are to be offered. In the United States, different states have particular requirements for allowing alien insurers to operate within the state.

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  1. What is the difference between a peril and a hazard?

    The two related terms "peril" and "hazard" are often used in reference to the insurance industry. Essentially, a peril is ... Read Full Answer >>
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    In the United States, and most developed nations, regulators impose required statutory capital reserve ratios on insurance ... Read Full Answer >>
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