Which state's laws would an "insurer" be subject to if were a USA subsidiary of a foreigncompany with headquarters in state X, and global offices, offices scattered across the United States of America (USA), and tons of subsidiaries of itself?

Does it subject to laws of wherever the broker lives or wherever the client lives?

What if the insurer were to remain silent on where legal fights would be done in their policy?

I had mentioned laws before such as this:

In accordance with N.J.S.A. 17:17-10b and N.J.A.C. 11:2-29.3, non-renewals shall not commence prior to one calendar year and 90 days following the submission of the informational filing, a notice of non-renewal shall be sent to every policyholder no later than one year preceding the date of non-renewal, and the non-renewal period shall not exceed three years.

  • As written, this seems to be asking for "specific legal advice", which is off-topic here. I would recommend that you rephrase it so that it is more generic and doesn't refer to a specific legal question that you personally have, something like "which state's laws would an insurance agency be bound by if it's a US subsidiary of a foreign company?" Commented Aug 18, 2022 at 14:14
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    Generally, but this may depend on the type of insurance you are talking about, a policy is covered under the laws of the state that it has been issued in. In other words, YOUR state. But you should read your actual policy, it should specify which laws are applicable.
    – jwh20
    Commented Aug 18, 2022 at 14:19

1 Answer 1


The insurer is subject to the laws of the state that it is doing business in. If a customer lives in a state where the company does not operate, the customer will have to get a new insurance company. You can travel to another state, no problem, but you can't live in a state where the company is not licensed. My former homeowner's insurance company does not operate in my current state so I had to get a new insurer when I moved. The actual residence of the agent / broker is irrelevant (given interstate commuting), what matters is the company's license to operate, and where the customer "is". If a doctor lives in Oregon, practices in Idaho and has a rental home insured in Washington, the homeowner's policy would have to be through an Oregon-licensed company, the malpractice insurance would be via an Idaho company, and the rental house insurance would be via a Washington company.

  • I believe this is correct, and I have upvoted it, but I think this answer would be significantly improved by a cited reliable source for this rule. Commented Aug 18, 2022 at 17:03
  • This is incorrect. The insurance company is everywhere and no where. People do business over e-mail.It is undefined where the internet takes place. You bought cable from Xfinity. Where does Xfinity take place? Everywhere and Nowhere. There's office's everywhere, and you've probably never been to them.
    – user46398
    Commented Aug 18, 2022 at 18:09
  • @user44744 the company may be everywhere and nowhere, but the policy is governed by the law of the state where the insured person is domiciled or where the insured property is located. Insurers need a license to write policies in a given state. A company that is licensed to write business in Ohio can't also write business in Indiana unless they're separately licensed by Indiana to do so. When it writes business in Ohio, the policy is subject to Ohio law. When it writes business in Indiana, the policy is subject to Indiana law.
    – phoog
    Commented Aug 18, 2022 at 18:30

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