Term
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Reasons for Insurance Regulation
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Definition
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Maintain insurer solvency
Compensate for inadequate consumer knowledge
Ensure reasonable rates
Make insurance available
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Term
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Definition
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affirmed the right of the states to regulate insurance(1868)
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Term
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U.S. v. South-Eastern Underwriters Association
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Definition
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(1944) the court ruled that insurance was interstate commerce when conducted across state lines and was subject to federal regulation
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Term
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Definition
| (1945) states that continued regulation and taxation of the insurance industry by the states are in the public interest |
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Term
| Financial Modernization Act |
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Definition
| (1999) changed federal law that earlier prevented banks, insurers, and investment firms from competing outside their core area |
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Term
| Methods of Regulating Insurers |
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Definition
Legislation, through both state and federal laws
Court decisions, e.g., interpreting policy provisions
Ž State insurance departments
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Term
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Definition
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Formation and Licensing of Insurers
Solvency Regulation
Rate Regulation
Policy Forms
Sales Practices and Consumer Protection
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Term
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Definition
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Term
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Definition
| an out-of-state insurer that is chartered by anohter state, but licensed to operate in that state. |
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Term
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Definition
| an insurer that is charted by a foreign country, but is licensed to operate in the state. |
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Term
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Definition
| assets that an insurer can show on its statutory balance sheet in determining its financial condition. |
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Term
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Definition
risk-based-capital: standard means that insurers must have a certain amount of capital, depending on the riskiness of their investments and insurance operations
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Term
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Definition
| provide for the payment of unpaid claims of insolvent property and casualty insurers |
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Term
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Definition
| the major method used to raise the necessary funds to pay unpaid claims |
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Term
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Definition
| is the inducement of a policyowner to drop an existing policy and replace it with a new one that provides little or no economic benefit to the client |
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Term
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Definition
| is the practice of giving an individual a premium reduction or some other financial advantage not stated in the policy as an inducement to purchase the policy |
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