Table of Contents

Research Handbook on International Insurance Law and Regulation

Research Handbook on International Insurance Law and Regulation

Research Handbooks in Financial Law series

Edited by Julian Burling and Kevin Lazarus

Given its economic importance, insurance is a field that has been underserved as an area of academic study. This detailed book provides much needed coverage of insurance law and regulation in its international context.

Chapter 25: USA: A Regulatory Overview of the World’s Largest Insurance Market

John Mulhern, Parimah Hassouri and Daren Moreira

Subjects: economics and finance, money and banking, law - academic, commercial law, finance and banking law, insurance law, law -professional, commercial law, finance and banking law

Extract

John Mulhern, Parimah Hassouri and Daren Moreira 1. INTRODUCTION Perhaps the most important, and the most challenging, consideration in evaluating the US system for regulation of the insurance industry arises from the fact that, unlike most western nations, the US insurance industry is regulated primarily at the local level by the various states, and not at the national level by the US federal government. The legislature of each state, district or territory enacts laws that govern the insurance industry within its borders. Insurers and reinsurers are regulated by state government officials in the state under whose laws they were incorporated (referred to as their ‘domiciliary state’), and to a degree by every other state in which they conduct business (referred to as ‘non-domiciliary states’). Consequently, on any given insurance regulatory issue there could be as many as 56 sovereign governments with potentially applicable laws, regulations and supervising regulatory agencies.1 It is true that the state insurance regulators working through their national association, the National Association of Insurance Commissioners (or ‘NAIC’) have made strides towards promoting uniformity of state insurance laws and regulations, and requirements are more uniform between the states than they once were. There are, however, still important differences between the laws of the various states in this area and a position on an insurance regulatory question in one state may not be followed in other states. This chapter provides an outline of this system of regulation. 2. BRIEF HISTORY OF US INSURANCE REGULATION The state-based system of...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information