What type of insurers are considered “domestic”?

Insurers that are classified as "domestic" are those that are chartered or established in the same state where they conduct their business. This means that if an insurer is created under the laws of South Carolina and operates within South Carolina, it is considered a domestic insurer.

The designation of "domestic" is significant in the insurance industry because it denotes compliance with the regulatory framework of that particular state, which includes adherence to the state’s licensing requirements, financial regulations, and consumer protection laws. This creates a local familiarity and accountability as the insurer is subject to the oversight of that state's insurance department.

The other options describe different types of insurers. Insurers operating in foreign countries would be considered foreign to the state in which they are chartered. International insurers typically operate across multiple states or countries, also categorizing them as foreign in the context of the state of domicile. Insurers that only provide coverage to non-residents suggest a focus on external markets, further emphasizing their non-domestic status. Thus, recognizing insurers that are chartered in their operating state clarifies their domestic role in the insurance landscape.