Which type of insurance entity is organized and operates on an international basis?

The type of insurance entity that operates on an international basis is referred to as an alien insurer. This classification applies to insurers that are incorporated or chartered in a different country from where they are doing business. For instance, if an insurance company is headquartered in Canada but sells policies in the United States, it would be considered an alien insurer in the U.S. market.

The concept of alien insurers is significant in insurance regulation, as it encompasses global operations and the various legal frameworks that govern cross-border insurance activities. The ability of these insurers to provide services in different countries often reflects their financial strength and capacity to handle risks on a broader scale.

In contrast, domestic insurers are those that operate within the same state or country where they are incorporated, while the designation of a fire insurer is specific to companies that focus primarily on property insurance related to fire and related hazards. An auto insurer, on the other hand, specializes in automobile insurance and does not automatically indicate a focus on international operations.