What is an insurance agency that operates within its home state called?

An insurance agency that operates within its home state is referred to as a domestic agency. This classification is based on the jurisdiction in which the agency is established and conducts its operations. A domestic agency is registered and licensed to conduct business solely within the state where it was formed, meaning it adheres to the state-specific regulations and laws governing insurance practices.

To contextualize this, a foreign agency would typically refer to an agency that operates in states outside its home state, while an international agency would imply operations across international borders, not limited to the United States. A local agency might suggest a community-focused business but does not necessarily indicate that the agency is officially recognized under specific state laws regarding its domestic or foreign status. The clear distinction of being a domestic agency highlights the agency's compliance and identity within its home state's regulatory framework. Understanding this terminology is essential for anyone studying insurance principles, as it relates to how agencies are categorized and governed.