Modernization efforts are not just about the survival of the state system. It is about responding to change and, in turn, making the best insurance regulatory system in the world even better. State policymakers believe consumers are—and will continue to be—best served by the states. Regulators and legislators have accepted the challenge to make the [...]
Insurance regulation is a complex matter and any change to the process should not be undertaken without thorough review and analysis of the impact of change to the business, companies and agents, and also to the consumers and policyholders the industry serves. However, the states have established aggressive timelines in order to meet their modernization [...]
What are states doing to keep insurance markets competitive with other financial services products, especially with regards to life insurance and annuities?
Insurers, especially in the life insurance and annuities market, increasingly face direct competition from products offered by other financial services entities. State insurance regulators have worked diligently over the past two years to identify the issues in this area and come up with possible solutions to reflect the new market realities. Regulators now believe that [...]
The purpose of government supervision is to make sure the critical personal interests of consumers are not lost in the arena of commercial competition. Once the consumer protection responsibilities of government insurance regulators are satisfied, it is fair to ask how the system of regulation can be made most compatible with the demands of commercial [...]
The Financial Modernization Act of 1999, also called Gramm-Leach-Bliley, established a comprehensive framework to permit affiliations among banks, securities firms and insurance companies. Gramm-Leach-Bliley once again acknowledged that states should regulate the business of insurance. However, Congress also called for state reforms to allow insurance companies to compete more effectively in the newly integrated financial [...]
The fundamental purpose for government regulation of insurers and agents is to protect American consumers. Effective consumer protection that focuses on local needs is the hallmark of state insurance regulation. State regulators understand local and regional markets and the needs of consumers in these markets. State policymakers recognize that consumer protection as their highest job [...]
Losses which are proximately caused by an insured peril under a named perils form or by an unexcluded cause under an "all-risks" form are covered from a "cause of loss" viewpoint. The proximate cause is the originating cause and if there is no intervening cause between the occurrence and the damage, then all damage is [...]
In coverage analysis, the cause of loss under named peril coverage must be by a specifically described peril in the form. An "all-risks" policy, as described by a Florida court, "ordinarily covers every loss that may happen except by fraudulent acts of the insured, excepting losses within a specific exclusion; insured has the burden of [...]
Any person that is physically able to drive your car is a risk that the insurance company has to take into account. If the person has a policy of their own they won’t be charged for the risk but still need to be listed.
It is never a bad idea to get flood insurance. Contact us to find out if you are in a high risk flood zone.