Foreign Insurer

Published: | Updated: April 16, 2018

Definition - What does Foreign Insurer mean?

A foreign insurer is an insurance company that is located in one state, but which writes policies for clients in other states. While foreign insurers are very common in health insurance, many insurers in the United States are restricted to selling in a single state due to the concept of "state lines."

Insuranceopedia explains Foreign Insurer

Insurance companies often become foreign insurers to access a larger market and acquire more clients. Insurers who try to operate as foreign insurers, however, face more challenges since they will have to compete with insurers in other states.

Many policyholders prefer using foreign insurers because they sometimes offer policies with better terms than those offered by insurers in their own states. Being able to buy insurance policies from foreign insurers allows policyholders to have more choices.


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