An alien insurer is defined as which of the following?

An alien insurer is defined as an insurance company that is not domiciled in the United States. This means that the insurer is incorporated or established in a country outside of the U.S. and is subject to the regulations of that foreign jurisdiction. In the context of surplus lines, alien insurers are often used to provide coverage for risks that may not be adequately covered by domestic insurers due to various regulatory, financial, or risk factors.

Understanding this term is crucial, especially for surplus lines brokers, because they may need to seek coverage from alien insurers when suitable options are unavailable from domestic markets. While the other options relate to different types of insurers or business models, they do not accurately reflect the definition of an alien insurer. This distinction underlines the importance of knowing the specific types of insurers and their regulatory environments in the context of surplus lines insurance.