What does the term "extraterritorial" refer to?

The term "extraterritorial" refers to actions or conditions occurring outside the jurisdictional territorial limits of a specific state or country. In the context of insurance and legal matters, it often pertains to situations where laws or regulations of one jurisdiction apply to incidents or activities that take place in another jurisdiction. This is especially relevant in scenarios involving workers' compensation, where the laws of one state may extend to cover employees working outside of that state's physical borders, thus allowing employers to provide coverage for workers participating in work-related duties in different locations.

The other choices do not accurately capture the essence of "extraterritorial." Coverage within state boundaries pertains to standard local policies, exclusive jurisdiction and international standards refer to specific laws and practices that do not encompass the broader application of laws outside of defined territorial limits.