What term describes an insurance policy formed outside of the United States?

The term that describes an insurance policy formed outside of the United States is "alien." This designation is used within the insurance industry to identify companies that are incorporated in a foreign country, meaning outside of the nation where the insurance policy is purchased or issued. For instance, if a policyholder in the U.S. has an insurance policy through a company that is headquartered in Canada, that policy would be classified as alien because the insurer is based in a different country from where the policyholder resides and conducts business.

In contrast, a "domestic" policy refers to one issued by an insurer incorporated within the same state as the policyholder, while "foreign" is used to describe insurers that are incorporated in one state but operate in others within the U.S. The term "expatriate" typically refers to individuals living outside their native country and is not specifically related to the classification of insurance policies. Understanding these distinctions is important for insurance professionals who deal with regulations and policies on both a national and international level.