An insurance company domiciled in Canada is an alien insurer in every US state where it is admitted to do business.

• A. Domestic insurer
• B. Foreign insurer
• C. Alien insurer
• D. Nonadmitted insurer

Answer: (C)

Insurers are classified by where they are legally domiciled. An insurer that is domiciled outside the United States is called an alien insurer. If it were domiciled in another U.S. state, it would be a foreign insurer; if it were domiciled in the same state, it would be a domestic insurer. This company is domiciled in Canada, so in every U.S. state where it is licensed to transact business, it is considered an alien insurer. Being admitted to do business in a state does not change its domicile classification. Nonadmitted would mean it isn’t licensed to operate in that state, which isn’t the case here.