State Insurance Departments Directory
As regulatory agencies, the state insurance programs have authority over how the insurance industry conducts business. The following eight points represent areas where regulatory authority is exercised:
Enforcement - Legal action is the ultimate enforcement instrument. Possible legal enforcement actions include: Cease and Desist Orders, Notices of Noncompliance, and Administrative Law Hearings. These actions may result in fines or penalties against licensees.
Consumer Protection - Departments aid consumers by regulating how insurance companies market and administer their policies. Insurance business must be conducted in an honest, open, and fair manner.
Licensing - Department hold licensing examinations for brokers and agents and investigates suspected violations by licensees.
Criminal Investigations - By actively investigating and arresting those who commit insurance fraud, criminal investigations protects the public from economic loss and general distress. Claimant, agent, and insurance company fraud is investigated and prosecuted to the fullest extent of the law.
Certificates of Authority - Insurance companies that want to do business must apply and be reviewed to determine whether or not they should be given the authority to sell insurance.
Conservation and Liquidation -Departments have a role to conserve, rehabilitate, or liquidate troubled insurance companies under appointment of the Superior Court.
Rate Regulation - Departments review proposed personal auto and homeowners insurance rates to ensure that they are fair, reasonable, and adequate.
Financial Surveillance - By examining and reviewing key financial statements and conducting audits of insurance companies, they oversee the financial condition of the insurance industry and helps to ensure stability and to protect policyholders.
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