What defines an alien insurer?

An alien insurer is defined as an insurance company that is incorporated outside the United States. The term "alien" specifically refers to the origin of the insurer's incorporation and indicates that the company is based in a foreign jurisdiction, which is distinct from domestic insurers that are incorporated within the U.S. Understanding this definition is crucial for navigating the complexities of insurance regulation, especially in the context of surplus lines, where alien insurers may be utilized to provide coverage that isn't available within the domestic market.

The other options refer to various types of insurers but do not accurately capture the essence of what constitutes an alien insurer. For instance, an insurer incorporated within the U.S. would be classified as a domestic insurer, while a company owned solely by American citizens or operating under U.S. regulations does not necessarily address the location of incorporation. Therefore, the specificity of being incorporated outside the U.S. is what makes option B the correct answer for defining an alien insurer.