What defines a domestic insurer?

A domestic insurer is defined as an insurance company that is incorporated and has its home office located within the same state where it operates. In this context, the correct answer reflects that the insurer's operations are governed by the state regulations and laws of Washington because its primary location is in that state. This designation is significant for regulatory purposes, as domestic insurers must adhere to the regulations set forth by the Washington Department of Insurance, which may differ from those in other states.

The other options presented do not accurately define a domestic insurer. A non-profit status does not influence whether an insurer is classified as domestic; being headquartered outside the United States pertains to an alien insurer rather than a domestic one; and the type of insurance offered, such as solely providing life insurance, does not determine the domestic status since domestic insurers can provide various types of insurance, including property and casualty lines.