What is the term for an insurance company that operates in a state other than where it was organized?

The term for an insurance company that operates in a state other than where it was organized is known as a foreign company. This categorization is significant within the insurance industry, as it helps define the regulatory framework that governs the company's operations in various states. A foreign company must comply with the insurance laws and regulations of the states in which it conducts business, even if it is organized in a different state.

In contrast, a domestic company is one that is organized and operates within the same state. This distinction is essential when considering state regulations, licensing requirements, and the oversight responsibilities that apply to different types of companies.

The terms fraternal company and surplus lines company refer to specific types of insurance organizations with unique structures and purposes, but they do not pertain to the geographical distinctions in the way that domestic and foreign companies do. A fraternal company is usually a non-profit entity organized for the mutual benefit of its members, while a surplus lines company deals with risks that are not readily available through traditional insurance markets. These definitions highlight the importance of differentiating the operational domains and regulatory environments of various insurance entities.