The us government is extensively involved in insurance provider regulation within the following areas her explanation:a. SEC regulations affect some facets of insurance accounting and to companies with publicly traded stock.b. Annuity contracts are regulated underneath the investment Companies Act of 1940.c. Federal Trade Commission regulates insurance provider mergers, advertising of mail order insurance, etc.d. HUD, through the Federal Insurance Administrator, regulates the flood, crime, FAIR Plan and riot reinsurance programs.e. The Interstate Commerce Commission specifies coverages required of interstate carriers.f. An international agreement negotiated through the federal government establishes civil liability for airline passengers in international travel.g. The Price-Anderson Act determines limits of liability and establishes absolute liability on operators of nuclear reactors.h. The Small Business Administration administers the Surety Bond Guarantee Program State vs. Federal Regulation The question of whether the public interest rates are best served by federal or state regulation is an open- ended question. An incomplete review of the advantages and disadvantages regarding each degree of authority is set forth below:’4Arguments for Federal Regulation Advocates of federal regulation contend that: state regulation is parochial; state regulation does 59not have uniformity; assuring regulation is dear. Since insurance companies must deal with numerous insurance departments, each having different requirements , costly duplication is inevitable. It’s further contended that states cannot effectively regulate interstate companies and that state insurance commissioners are unqualified agree with. Arguments Against Federal Regulation Proponents of state regulation contend that state regulation is attentive to local conditions and needs; state regulation is definitely an established and known entity; and […]
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