Regulation

  • Equal to the need for financially sound insurance products is the need for socially responsive insurance companies.
    • Consumers are not well served by a company that meets statutory reserve requirements but engages in unacceptable or morally-barren trade practices any more than they are served by companies that offer them pie-in-the-sky policies backed by assets worth no more than the paper on which they are written.
    • Therefore, the issues brought to the NAIC should not be so narrow as to overlook the relationship of product service and product soundness.
    • Both elements need to be balanced as decisions are made in a changing industry.

--  Lymcon L. Olson, Jr., NAIC Presidential Address

1983-1, NAIC Proc.

  • 2011 1205 - NAIC to FIO
    • Insurance regulation can generally be described in two simple statements.
      1. Insurance regulators want insurers to have sufficient assets to make good on the promises they are selling...
      2. and they want insurers to treat their policyholders and claimants right.
    • The first part of the statement describes what is known as solvency regulation and the second part is known as market regulation.
  • Mr. SCHWARCZ. <Law Professor> So, notably, you will see that my testimony was focused on different issues than many of the other witnesses, and that is because it is true that solvency regulation is in many ways the core of insurance regulation.
    • Now, I say this to contrast it with market conduct and other forms of consumer regulation.... (p12)
  • Ms. VAUGHAN <NAIC President>. Thank you very much, Senator. The first thing I want to say, I agree with Professor Schwarcz that the level of our collaboration in market regulation is behind the level of collaboration in solvency regulation and that is something we have been working on for a number of years, to try to increase the collaboration.  (p13)

2011 0914 - GOV - EMERGING ISSUES IN INSURANCE REGULATION - Congressman Reed (RI)

  • [PDF-51p. VIDEO-Senate]
  • Senate - SUBCOMMITTEE ON SECURITIES, INSURANCE, AND INVESTMENT - COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS
  • 2022 - AP - Regulatory Competition in the US Life Insurance
    Industry, by Johnny Tang - 88p
  • Kevin M. Mccarty, Commissioner, Florida Office of Insurance Regulation, On Behalf of the National Association of Insurance Commissioners (NAIC)
    • (p22-23) - The U.S. system is complicated, and a lot different than the rest of the world. And it is very difficult for the IMF and others to really understand the complexity of the U.S. system and the different parts that are involved.

2015 0429 - GOV (House) - The Impact of International Regulatory Standards - PDF-125p

1999 - JIR - The significance of insurance research to those involved in the regulatory process, 

1995 - JIR - Symposium on the regulation of life cost disclosure and market conduct

WORDS AND CONCEPTS

Standard Valuation Law, Standard Non-Forfeiture Law, Replacements, Solvency, Consumer Protection, Suitability, Market Conduct, Manipulation, Life Insurance Disclosure, Working Groups, Market Analysis, 

GOVERNMENT

  • 1991 GOV How Insurance Laws Are Made NAIC 358p
  • 1991 GOV Regulation of Insurance Companies and the Role of the NAIC 291p
  • 1992 GAO The Failures of Four Large Life Insurers 21p
  • 1992 GOV Consumer Disclosure of Insurance 323p
  • 1993 GOV When Will Policyholders Be Given The Truth About Life Insurance 354p
  • 2011 GOV EMERGING ISSUES IN INSURANCE REGULATION 52p
  • -- FSOC
  • -- FIO
  • The challenge we face as actuaries is to lead the industry
    into the 1980s developing the products to pass along the investment success  . . and likewise, the investment failure, to develop the systems to support them and to work with and I must emphasize work with the state and Federal regulators to develop the environment to govern them.

-- DENISE F. ROEDER

1980 - NON-PARTICIPATING LIFE PRODUCTS WITH NON- GUARANTEED PREMUIMS, Society of Actuaries - 22p

ACTUARIAL

  • 1980 - SOA - Insurance Regulation and Legislation, Society of Actuaries - xxp
  • 1999 - SOA - How Well Has State Regulation of Life Insurance Served the Marketplace?, Society of Actuaries - xxp
  • 2013 - SOA -Life Insurance Regulatory Structures and Strategy: EU Compared with US, Society of Actuaries - 92p
  • SOA - "Update on Regulatory Developments"
  • Since the past serves as a prologue,3 this Article shall survey traditional U.S. approaches to financial regulation-the three pillars of which are banking regulation, insurance regulation, and securities regulation. 

2010 - LR - The Role of Trust in Financial Regulation, Ronald J. Colombo - 27p

  • Mr. Wright <Commissioner> reported that the NAIC had agreed to hire an actuarial consultant to assist the working group in its task.

1994-3, NAIC Proceedings

7Although insurance is generally exclusively regulated by state entities, some products offered by insurance companies are overseen by other regulators.

  • For example, variable life insurance may be considered an investment vehicle due to the ability of the policy owner to direct the cash values or accumulation funds into various investment instruments.
  • Unlike the other life insurance products, the variable life insurance product may have a dual regulatory enforcement; the life insurance portion regulated by the insurance regulator and the investment portion (cash value) regulated by securities regulators.

2005 - GAO - Financial Product Sales: Actions Needed to Better Protect Military Members - 88p -  [LINK]