What is a foreign carrier?

A foreign carrier refers to an insurer that is based in a different state than the one in which it is providing insurance coverage. This designation is commonly used in the context of U.S. insurance regulation, where insurance companies are categorized based on their incorporation and operational locations. Therefore, an insurer with its headquarters in another state fits the definition of a foreign carrier, as it operates across state lines but remains under the regulatory oversight of the state where it is incorporated.

Understanding the classifications of insurers is essential for recognizing how various states regulate insurance markets and protect consumers. In contrast, insurers operating within California are classified as domestic carriers, while those located in different countries would fall under different regulatory frameworks entirely and are not generally referred to by the term 'foreign carrier' in this context. The concept of an insurance provider serving international clients does not specifically address the state or country of the insurer's incorporation, making the most suitable choice the one identifying insurers based in other states.