Alien Insurer
What Does Alien Insurer Mean?
An alien insurer is an insurance company established in one country but that sells and provides insurance to another country. The alien insurer complies with the industry regulations of the country in which it sells its products.
Insuranceopedia Explains Alien Insurer
Although the terms “alien insurer” and “foreign insurer” may seem semantically similar, they have distinct meanings in the US.
A German insurance company, established in Germany, that sells insurance policies in any US state is considered an alien insurer. Similarly, an insurance company formed in Wisconsin but represented by an agent in New York to provide insurance for a New York resident is also an alien insurer.
People often purchase insurance from a foreign company (or an alien insurer) when the risks they wish to cover are not offered by their domestic insurers or state-based insurance companies. The risks may be considered unusual. For example, Lloyd’s of London has a significant American clientele, particularly among celebrities. Rock singer Bruce Springsteen, for instance, has insured his vocal cords with this company.
