When doing business in North Dakota, an insurance company formed under the laws of another state is referred to as which type of insurer?

When an insurance company is formed under the laws of a state other than North Dakota, it is classified as a foreign insurer. This classification is used to denote insurers that are incorporated in one state while operating in another state. In this case, since the insurance company was formed under the laws of a different state, it is recognized as foreign because it is not locally based in North Dakota.

Understanding the different types of insurers is crucial. A domestic insurer is one that is incorporated in the state where it is operating. If the company were formed in a country outside of the United States, it would be categorized as an alien insurer. Surplus lines insurers pertain specifically to coverage that isn't available through standard insurers and are not relevant to the basic classification of insurers based on their state of formation.

This precise distinction helps in regulating how insurance companies operate across state lines, ensuring that they comply with the laws relevant to the states where they provide insurance coverage.