REINSURANCE: A U.S. domiciled insurer which is domiciled (incorporated) in a state other than the jurisdiction of the insured.
*****
Name given to an insurance company based in one state by the other states in which it does business.
*****
Within a particular state, insurance companies are designated as domestic, foreign, or alien. In the state where an insurance company is incorporated it is known as a domestic insurance company. In all other states where it operates it is known as a foreign insurance company. An insurance company based in another country is known as an alien insurance company in the U.S.. Both foreign and alien insurance companies have to meet stricter financial and reporting requirements. This is to ensure the public that the foreign or alien company is solvent and reputable.
Insurance Encyclopedia
foreign insurer
An insurance company housed in a different state than the one the insured’s policy is written in.
***
From the U.S. perspective, an insurer domiciled in the United States but outside the state in which the insurance is to be written. In effect, it is a domestic insurer doing business outside of the state in which it is domiciled.
***
Insurer domiciled in a country other than the one where the insured exposure is located. Contrast with “Alien Insurer.”
***
MEDICAL,USA,REFERENCE See: foreign company .
Foreign Jurisdiction Clause
A clause in a policy providing that claims shall be settled in a jurisdiction other than that of the country where the insurers are based.
foreign medical graduate (FMG)
Physician who graduated from a medical school outside of the United States.
Foreign reinsurer
A reinsurer chartered (domiciled) in one state writing business in another state is considered to be foreign in the non-domiciliary state. In its own state, the reinsurer is considered to be domestic.
Foreign Trade Zone
A free port in United States divorced from Customs authority but under Federal Control. Merchandise, except that which is prohibited, may be stored in the zone without being subjected to the United States tariff regulation. Also called Free Trade Zone.
Foreign Trade Zone Entity
A form declaring goods which are brought duty free into a Foreign Trade Zone for further processing or storage and subsequent exploration.
Foreign use (motor vehicles)
Use of a motor vehicle outside the policy’s normal UK territorial limits. To conform with EC law, the third party insurance must meet the minimum compulsory requirements of EC states. Insurers may automatically, or by agreement, extend cover to comprehensive cover if insured on that basis in the UK. A foreign use section is included in private car and commercial vehicle policies. See GREEN CARD.
Foreseeability
Capability of an insured individual to know beforehand or have possible anticipation that injury would be the result of a specific act or an absent act.
***
UK: The test of reasonable foreseeability’ is applied in determining liability in the tort of negligence. The case known as the Wagon Mound (No. 1) made the rule that damage following negligence will not be too remote if it is reasonably foreseeable. Thus foreseeability not directness is the test but see egg shell skull rule.
Forestry Insurance
Protection against loss or damage to trees (standing timber), most commonly against fire, catastrophic windstorm, snow, flood or earthquake events. Escalating valuation is applied in order to reflect the increasing volume of timber and thus exposed values at risk with increasing age of the trees.