What defines a domestic insurer?

A domestic insurer is defined as one that is incorporated and doing business in the state where it is licensed. This means that if an insurer is formed under the laws of a particular state, it is considered domestic to that state, regardless of whether it operates in other states as well. The term emphasizes the relationship between the insurer and the state of incorporation, which is crucial for regulatory purposes and compliance with state insurance laws.

In this context, being a domestic insurer has specific implications for regulation, taxation, and adherence to state mandates, which are often tailored to protect the interests of policyholders within the state. The other options do not accurately represent this definition, as they imply either broader operational scopes or the company's incorporation in states outside of its operational base.