Lecture Risk management and insurance - Lecture No 15: Government regulation of insurance

This chapter’s objectives are to: Reasons for insurance regulation, historical development of insurance regulation, methods for regulating insurers, what areas are regulated?, state versus federal regulation, current problems and issues in insurance regulation. | Government Regulation of Insurance Lecture No. 15 1 Objectives Reasons for Insurance Regulation Historical Development of Insurance Regulation Methods for Regulating Insurers What Areas are Regulated? State versus Federal Regulation Current Problems and Issues in Insurance Regulation 2 Reasons for Insurance Regulation Maintain insurer solvency Compensate for inadequate consumer knowledge Ensure reasonable rates Make insurance available 3 Transparency Master Historical Development of Insurance Regulation Insurers were initially subject to few regulatory controls Paul v. Virginia (1868) affirmed the right of the states to regulate insurance The court ruled that insurance was not interstate commerce In . v. South-Eastern Underwriters Association (1944) the court ruled that insurance was interstate commerce when conducted across state lines and was subject to federal regulation The legality of rating bureaus was questioned 4 Historical Development of Insurance Regulation The . | Government Regulation of Insurance Lecture No. 15 1 Objectives Reasons for Insurance Regulation Historical Development of Insurance Regulation Methods for Regulating Insurers What Areas are Regulated? State versus Federal Regulation Current Problems and Issues in Insurance Regulation 2 Reasons for Insurance Regulation Maintain insurer solvency Compensate for inadequate consumer knowledge Ensure reasonable rates Make insurance available 3 Transparency Master Historical Development of Insurance Regulation Insurers were initially subject to few regulatory controls Paul v. Virginia (1868) affirmed the right of the states to regulate insurance The court ruled that insurance was not interstate commerce In . v. South-Eastern Underwriters Association (1944) the court ruled that insurance was interstate commerce when conducted across state lines and was subject to federal regulation The legality of rating bureaus was questioned 4 Historical Development of Insurance Regulation The McCarran-Ferguson Act (1945) states that continued regulation and taxation of the insurance industry by the states are in the public interest Federal antitrust laws apply to insurance only to the extent that the insurance industry is not regulated by state law ., insurers are not exempt from the Sherman Act provisions The Financial Modernization Act (1999) changed federal law that earlier prevented banks, insurers, and investment firms from competing outside their core area 5 Methods of Regulating Insurers The three principal methods of regulating insurers are: Legislation, through both state and federal laws Court decisions, ., interpreting policy provisions State insurance departments Every state has an insurance commissioner, who administers state insurance laws The National Association of Insurance Commissioners meets periodically to discuss industry problems and draft model laws 6 What Areas Are Regulated? All states have requirements for the formation and licensing of insurers .

Không thể tạo bản xem trước, hãy bấm tải xuống
TỪ KHÓA LIÊN QUAN
TÀI LIỆU MỚI ĐĂNG
Đã phát hiện trình chặn quảng cáo AdBlock
Trang web này phụ thuộc vào doanh thu từ số lần hiển thị quảng cáo để tồn tại. Vui lòng tắt trình chặn quảng cáo của bạn hoặc tạm dừng tính năng chặn quảng cáo cho trang web này.