Foreign Insurer

What is an Foreign Insurer?

 

From the U.S. perspective, an insurer domiciled in the United States but outside the state in which the insurance is to be written. In effect, it is a domestic insurer doing business outside of the state in which it is domiciled. See also Alien insurer.

 

Understanding Foreign Insurer

 

An admitted insurance carrier is backed by a specific state. An admitted carrier can be admitted in one state but not another. To be an admitted carrier, an insurance company must comply with all of the regulations set by the state that has admitted them.

Working with admitted carriers provides added benefits to consumers. When purchasing policies from admitted carriers, consumers often experience the omission of certain fees and taxes. Consumers also have the right to appeal to the state if policies have been handled improperly. This sets admitted carriers apart from non-admitted insurance carriers.