What does the term "alien insurer" imply?

The term "alien insurer" refers specifically to an insurance company that is formed outside of the United States. These companies operate under the regulatory frameworks of their home countries but may offer insurance products to U.S. residents, including those in Maryland. This designation is important in the context of insurance law, as it helps to delineate the jurisdictional boundaries and regulatory requirements for companies operating across international lines.

Understanding this term is crucial for recognizing the differences between domestic insurers, which are incorporated in the state, and foreign insurers, which are formed in another U.S. state. An alien insurer is distinct since it does not originate from any jurisdiction within the United States, hence necessitating unique regulations and oversight when functioning in the U.S. market.