State-regulated insurance
State-regulated insurance refers to insurance products and carriers overseen primarily by individual U.S. State governments rather than the federal government.
Each state enforces unique rules, such as minimum liability limits for auto insurance–for example, California requires $15,000 bodily injury per person, based on a report from YourInsurance.info. State insurance departments review insurer rates to protect consumers against price gouging, evidenced by New York’s Department of Financial Services rejecting or reducing hundreds of rate hikes annually.
States approve policy forms before insurers can sell products; Texas reviews thousands of health policy filings each year. Licensing requirements mandate that companies and agents register in every state where they operate–Allstate holds active licenses in all 50 states.
States oversee insurer solvency using benchmarks like risk-based capital ratios, with Florida requiring companies to maintain a minimum surplus of $4 million. Consumer complaints about claims or unfair practices go to state regulators, who resolved over 80,000 complaints nationwide in 2022 according to NAIC data.
States set coverage mandates for health insurance; Massachusetts requires pediatric dental coverage in ACA plans while other states do not. Policyholder protections like guaranty associations–such as the California Life & Health Insurance Guarantee Association–provide backup if insurers fail.
State-initiated investigations frequently result in fines, exemplified by California assessing $55 million in penalties for violations in 2021. Rate approval timelines vary: Maryland reviews homeowners’ insurance rate changes within 45 days on average.
What is state-regulated life insurance?
State-regulated life insurance is a form of life insurance that is approved and regulated by the state. It typically covers death benefits, burial or funeral expenses, or other financial needs resulting from an insured person’s death. State-regulated life insurance policies are usually issued by large insurers and come in different forms such as whole life,…
What is the new state-regulated life insurance program?
The new state-regulated life insurance program is a policy that provides coverage for eligible individuals and their families, providing financial protection and benefits in the event of death or other unexpected life events. The program is designed to help protect individuals who have difficulty obtaining or affording traditional life insurance policies. It also aims to…
See also State-specific coverage.