RMI 2301 Lecture 4: Lecture four Insurance regulation
Document Summary
Both: what is the history of insurance regulation. Court ruled that insurance was interstate commerce when conducted across lines and was subject to federal regulation. Therefore, as long as state regulation is in effect, federal antitrust laws will not apply to insurance. Ultimately, the states still have the primary responsibility for regulating insurance however, congress has power to repeal mccarran-ferguson act which would give the primary authority to federal government: one law changed the financial services sector: gramm-leach-bliley act (1999): As a result, regulation of the insurance industry has become more complex bc of the different levels of regulation at the state and federal level and the overlap of regulatory functions. Insurers can buy banks; banks can underwrite insurance **makes it easier to transfer insurance: what is regualated within insurance, formation and licensing of insurers> all states have requirements for the formation and licensing of insurers.