What defines a foreign insurance company?

A foreign insurance company is defined as an insurance provider that is incorporated in one jurisdiction but conducts business in another jurisdiction. In the context of U.S. insurance, a foreign company is one that is based or incorporated in a state other than the one in which it is offering insurance products. Therefore, the correct answer accurately describes that a foreign insurance company is headquartered outside the U.S. while selling in the U.S. market.

The other options do not accurately define a foreign insurance company. Having a home office in the same state refers to a domestic insurance company, which operates within the state where it is incorporated. Being incorporated in another country does not fully define a foreign insurance company in the U.S. context, as it focuses on interstate operations rather than international ones. Operating exclusively online has no bearing on the definition of an insurance company’s status and relates more to the method of conducting business rather than the jurisdiction of incorporation.