Life Insurance Quotes

Life Insurance Regulation

insurancebrochure on Life Insurance Regulation

The following state government agencies are responsible for life insurance regulation which includes companies and insurance producers a.k.a. agents/brokers. Website addresses may change without notice and we do not represent or guarantee that all addresses below are current.

All life insurance regulation is done state by state. Relative to state regulation, there is little federal regulation directed specifically at the insurance industry.

Life insurance regulation does not determine what the premium rates should be. However, in most states, each insurer must file its proposed rates for the insurance it sells with the state insurance regulator and must be able to justify the rates with actuarial figures.

With life insurance regulation (and all other insurance), it must be shown that the rates are reasonable considering the cost of claims and company operations, and an allowance for reasonable profit if the insurer is a for-profit company. The rates should not be too high as to be excessive or too low as to jeopardize the company's financial integrity.

Under life insurance regulation, companies must also file financial reports with the state insurance regulator to demonstrate financial stability. If any life insurance company does not meet the minimum requirements for financial strength, it may be put out of business. Usually, an attempt is made to have the obligations of the life insurance company taken over by another insurer so as protect the public by enabling continuity of policies.

Life insurance regulation is stronger than many people realize. Guaranty funds that may pay part or all of the claims against defunct insurers may also be operated by the state regulatory authority. It should also be pointed out that all life insurance regulation is typically financed by licensing fees, not by taxes.

This website and its content is not affiliated with, not endorsed by, and is not approved by, any insurance regulatory authority listed below. No insurance regulatory authority listed below necessarily agrees with any statement on this page or elsewhere on this website.