1.8 History of Regulation
The primary purpose of regulation is to promote the public welfare by maintaining the solvency of insurance companies, providing consumer protection, and ensuring fair trade practices and fair contracts at fair prices. Throughout history, federal and state governments have fought over regulatory control of the insurance industry.
"The Federal Government rules!!!"...
..."No way...the States rule!!!"
There are three primary methods used to regulate the business of insurance.
- Legislation
- The court system
- State insurance departments
Here we'll look at some of the key regulations that affected the history of insurance, beginning in 1868 with Paul v. Virginia through 1999 with the Financial Services Modernization Act.
