Methods for Regulating Insurers
Three principal methods are used to regulate insurers: legislation, courts, and state insurance departments.
Legislation
All states have insurance laws that regulate the operations of insurers. These laws regulate (1) formation of insurance companies, (2) licensing of agents and brokers, (3) financial requirements for maintaining solvency, (4) insurance rates, (5) sales and claim practices, (6) taxation, and (7) rehabilitation or liquidation of insurers. Also, laws have been passed to protect the rights of consumers, such as laws restricting the right of insurers to terminate insurance contracts and laws making insurance more widely available.
Insurers are also subject to federal regulation by federal laws and ...
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