Which type of insurer is formed under the laws of another nation?

The correct choice is C, as an alien insurer refers to any insurance company that is formed under the laws of a country other than the one in which it operates. For example, if an insurance company is established in Canada but sells policies in the United States, it is classified as an alien insurer in the U.S. This designation is crucial for understanding jurisdictional regulations, as alien insurers must comply with the regulatory requirements of the country they are operating in, even though they are based elsewhere.

The classification of insurers is important in the insurance industry, as it helps delineate the legal framework under which they operate. Domestic insurers are those established and operating within the state they are licensed, whereas foreign insurers are formed in another state but within the same country. Conversely, mutual insurers are a type of insurer organized for the benefit of their policyholders, but their classification does not pertain to their place of formation. Understanding these distinctions helps in comprehending how various insurer types function across different jurisdictions.