How is a foreign insurer defined?

A foreign insurer is defined as an insurance company that is incorporated or based in a different state than where it is doing business. This means that if an insurance company is headquartered in, say, Nebraska, but sells policies in Kansas, it is considered a foreign insurer within the context of Kansas insurance regulations. This classification is important for regulatory purposes, as different states have various requirements for foreign insurers, particularly regarding licensing and compliance with state laws.

The definition emphasizes the insurer's state of incorporation rather than its geographical presence or client base. Thus, the option reflecting that an insurer is based in a different state than its office accurately captures this understanding. The other choices reference aspects that do not align with the legal definition of a foreign insurer, such as serving only local clients or operating without a license, which pertain to different regulatory considerations.