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26
The Regulation of Life Insurance
Part 1
Jon S. Hanson

Chapter Outline

DEVELOPMENT OF INSURANCE REGULATION AT THE STATE LEVEL
Evolution of Regulation
State Insurance Regulation Agencies
GOALS OF INSURANCE REGULATION
Internal Goals
External Goals
LICENSING: FOUNDATION OF REGULATORY CONTROL
Formation and Licensing of Insurers
Controls over Unauthorized Insurers
Licensing of Agents
SUBSTANTIVE CONTENT OF STATE INSURANCE REGULATION
Security: Reliability of the Insurance Institution to Perform Its Insurance Obligations
Insurer Operations: Reasonable, Equitable, and Fair Treatment of Policyowners
Illustrative Areas Giving Rise to Solidity and Marketplace
Regulatory Concerns

In the United States, government has exercised perhaps as much if not more control over the business of insurance than any other private business activity. However, despite periodic federal interest, at least to date, the primary responsibility for regulation continues to rest with the states. This chapter will concentrate on life insurance regulation at the state level. The next chapter will discuss state insurance regulation within the environment of potential and/or actual federal controls.

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