Spotlight

How Is Insurance Regulated?

In the U.S. insurance is regulated by the individual states. While the regulatory processes in each state vary, three principles guide every state’s rate regulation system: that rates be adequate, but not excessive, nor unfairly discriminatory.

Key Issues

• Insurance Regulation

  An overview of current insurance regulation practices and modernization proposals, including creating an optional federal charter.

• Financial Condition of Insurers

  Discussions of the financial condition of insurers, the operations of residual markets and proposed changes to insurance accounting.

• Insurance Company Insolvencies

  A review of insolvencies in the insurance industry and the mechanisms of guaranty funds to protect consumers.

• Insurance and Disasters

  The role of insurers in catastrophe recovery, briefs on disaster insurance, and discussions of public policy developments.

• The Liability System

  The impact of liability systems on insurance costs and a review of reform proposals and alternatives to litigation.

• Medical Malpractice Insurance

  An overview of medical malpractice insurance and public policy efforts to control costs resulting from medical malpractice suits.

• Credit and Insurance

  A discussion of how and why insurers use credit history information, which is an important indicator of insurance risk.