Principles of Risk Management and Insurance, 13th Edition

Chapter 8 Government Regulation of Insurance

“There are serious shortcomings in state laws and ­regulatory activities with respect to protecting the interests of insurance consumers.”

U.S. Government Accountability Office

Learning Objectives

After studying this chapter, you should be able to

• Explain the major reasons why insurers are regulated.

• Identify key legal cases and legislative acts that have had an important impact on insurance regulation.

• Identify the major areas of insurance that are regulated.

• Explain the objectives of rate regulation and the different types of rating laws.

• Explain the major arguments for and against state regulation of insurance.

• Describe some approaches for modernizing the regulation of insurance.

Christopher, ...