In the context of U.S.-based insurance companies, the term International Insurance refers to all insurance business transacted outside the United States, including its territories and possessions. This category is typically used when a more specific line of business cannot be identified for underwriting or claims that involve non-domestic operations. The classification helps in segregating and managing policies that extend beyond the national jurisdiction of the U.S.
Scope
- Overseas Coverage: Encompasses any contracts or policies specifically underwritten for businesses or individuals residing or operating outside the U.S.
- Undesignated Line: Classification is used when an existing line of coverage—such as property, life, auto, or liability—cannot be clearly applied based on the details of the transaction.
Regulatory Framework
Coverage rules and regulations can vary significantly between countries. In the U.S., international insurance aspects are also treated with respect to federal regulations such as the Foreign Account Tax Compliance Act (FATCA), which influences how international financial and insurance activities are reported to the Internal Revenue Service.
Insurance providers operating internationally need to comply with not only U.S. federal law but also the local regulations of other nations. This makes international insurance a complex field that requires knowledge of multiple legal systems and practices.
