Who is the governing body that regulates auto insurance companies?
February 8th, 2010 | by The Broker |
tmcganey asked:
What are the requirements to be an auto insurance provider. Not an agent but a company that actually writes policies
What are the requirements to be an auto insurance provider. Not an agent but a company that actually writes policies
4 Responses to “Who is the governing body that regulates auto insurance companies?”
By frediwhite@verizon.net on Feb 9, 2010 | Reply
At their insistence, insurance companies are regulated by the states, so there are 50 agencies. That makes it easier for the firms to influence legislation compelling to do what they want to do anyway so they can tell the consumer “We have to do it this way, it’s the law.”
By Mary L on Feb 12, 2010 | Reply
Insurance companies are licensed to do business in the states where they write policies. Those licenses are issued by the various state governments, often by a separate division in the executive branch and named the Department of Insurance or something similar. There are various state laws and administrative rules that outline how the company can operate, how much money they are required to have in “reserves” (to pay claims), non-discrimination, etc. A company may decide for various reasons not to provide certain kinds of insurance in the states where they are licensed, but cannot choose to sell policies where they are not licensed. (Agents are also licensed by the state.)
By mbrcatz on Feb 15, 2010 | Reply
Each state insurance department regulates companies.
Requirements include having a HUGE amount of cash reserves, and legal policy forms.
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