What is the designation for an insurance company that operates in a state where it is not chartered?

The designation for an insurance company that operates in a state where it is not chartered is referred to as a foreign insurer. A foreign insurer is one that is incorporated in one state but conducts business in another state. This means that while the company is chartered in its home state, it is recognized as a foreign entity when it operates outside of that home state.

This classification is crucial for regulatory purposes, as each state has its own insurance regulations, and foreign insurers must comply with the laws of the states in which they operate. For example, if an insurance company is incorporated in Georgia but selling insurance products in Mississippi, it is considered a foreign insurer in Mississippi. The understanding of these designations facilitates the distinction between domestic insurers, which are chartered in the same state where they operate, and alien insurers, which are based in a different country altogether.

The designation of a regional insurer, on the other hand, usually pertains to companies that primarily operate within a specific geographical area but does not specifically address the chartering status in relation to multiple states.