What classification do insurers who provide coverage only within a single state belong to?

Insurers that provide coverage solely within a single state are classified as domestic insurers. This classification indicates that the insurer operates primarily in the state where it is incorporated and is subject to that state's regulations and laws. Domestic insurers are familiar with the local market conditions, regulations, and needs of policyholders, making them adept at tailoring their products to those specific requirements.

The other classifications, such as foreign and alien, refer to insurers based on their operational presence relative to where they are incorporated. Foreign insurers are those that are incorporated in one state but sell insurance in other states, while alien insurers are those incorporated outside the United States. The term “risk retention” relates to a specific type of liability insurance and does not directly pertain to the geographic classification of insurers. Thus, the classification of domestic accurately reflects those insurers that confine their operations to a single state.