A Brief History of Insurance Regulation in the United States

Insurance licensing is a complex legal quagmire in the United States. Before 1850, insurance companies operated with very little formal regulation. However, as these companies proliferated, it became obvious that there was a strong need for formalized regulations. Before then, these companies acted with impunity, often creating chaos and a negative consumer experience.

A Supreme Court decision in 1869 determined that insurance was not subject to federal control. However, this was reversed in 1944. Then, in 1945, Congress placed the power to regulate insurance in the hands of individual states. It also left some regulatory authority to the federal government, but the lion’s share of control rested (and continues to rest) with the states.

As a result, state insurance departments were created. These insurance departments are overseen by insurance commissioners (although this title is not the same in every state.) The insurance commissioner is either appointed or elected, according to that state’s laws. The insurance commissioner is the chief of the state insurance department.

The insurance commissioner is charged with the enforcement of state insurance laws, including monitoring the operations and solvency of each insurance company in that state. These departments must also keep track of how each company is organized, operated, managed, and controlled. The commissioner is the person who determines whether a given insurance company can do business in that state. Companies permitted to do business in a given state are granted status as admitted companies. Non-admitted companies have limited operational authority in a state. They are not regulated as heavily, but they must register and will not be covered by any state guaranty funds.

State insurance laws are intended to ensure that the public receives fair treatment in insurance matters. They protect consumers from fraudulent activity on the part of insurance companies.

In order to sell insurance in a given state, an individual must (in most cases) prove to have adequate knowledge of the product being sold. They must also meet all state licensing requirements. Insurance licenses protect consumers, prove qualifications, and state an agent’s authorization to sell insurance products. In most states, individuals cannot sell insurance without being licensed. Appointments may also be required by many states, which will be explained later in this chapter.

An insurance license is required for anyone who wishes to:
• Sell insurance: exchange a contract of insurance by any means, for money or an equivalent, on behalf of an insurance company
• Negotiate: offer advice to someone planning to buy an insurance contract regarding benefits, terms or conditions (if the person engaged in this negotiation sells insurance or obtains insurance from insurers for purchasers.)
• Solicit: attempt to sell insurance or ask someone to apply for insurance of a particular sort from a particular company

Those who attempt to sell, negotiate, or solicit insurance without a license are typically subject to harsh penalties, including fines, disciplinary action and, rarely, imprisonment. In some cases, both the individual and the company for whom that individual was selling products without being properly licensed will be penalized.

When a state legislature passes a new insurance law or regulation, rules and procedures are also enacted to aid the insurance commissioner in enforcing those laws. Insurance laws do not change much. On the other hand, rules and procedures change frequently. This is because of changes in personnel (insurance commissioners), insurance department budgets, technology, and industry trends, among other factors.
Insurance departments are the bodies charged with recommending laws to state legislators, approving insurance rates, approving policy forms and overseeing insurance marketing practices. They are also charged with protecting consumers.

In most states, the assistant to the insurance commissioner is known as the deputy commissioner. The insurance department is usually organized into divisions. Those divisions may include: policy, form and rate filings; annual statements; legal counsel; consumer inquiries and complaints; company licensing; deposits; premium tax; and producer licensing.

The NAIC and PMLA: Bringing Some Organization to the Chaos

The NAIC is the National Association of Insurance Commissioners. Insurance commissioners from the 50 states, the District of Columbia and five U.S. territories belong to the NAIC. It was founded in 1871 and its goal is to help commissioners develop uniform policies when this is possible and logical.
The NAIC establishes and recommends model laws. Committees suggest any changes or additions to these laws. The suggestions are then voted on by the executive committee and members of NAIC. Although the NAIC does not require states to adopt the model laws, many do. This ensures some standardization as far as rules and procedures in the insurance business.
One important federal law to be aware of is the Gramm-Leach-Bliley Act (GBLA), which was passed in 1999. This law primarily affected the banking industry, but a portion of it required state insurance departments to standardize their licensing requirements. Based on this law, NAIC developed the Producer Licensing Model Act (PLMA.) This model gives definitions of producers, their duties, and license and appointment requirements. Most states have adopted the PMLA, either wholly or partially. The requirements that we explain here are based on the PMLA.
One of the groups, or task forces, within the NAIC is the Producer Licensing Working Group, or PLWG. The PLWG is focused on the goal of streamlining and providing uniformity to the insurance producer licensing process.

The National Insurance Producer Registry (or NIPR) is a nonprofit affiliate of the NAIC, created in 1996 to help the states and the NAIC restructure, simplify and standardize the producer licensing process.

One program the NIPR has developed is known as the State Producer Licensing Database (SPLD.) It is used by regulators to connect state insurance departments with the entities being regulated (title insurance companies.) This way, applicants and licensees can submit applications, appointments, terminations, address changes and other important information to regulators in multiple states directly through the online system developed by NIPR. They can also use authorized third party providers who have access to the NIPR system.

Although great strides have been made in the direction of uniformity when it comes to insurance licensing, there is still a different process in each state when it comes to becoming licensed as insurance producers. This is particularly true with “special” lines like title insurance. The intention of this handbook is to guide those interested in becoming licensed as an agent or agency in navigating each state’s rules and regulations.

Car Insurance Calculator and Car Accident Claim Explained in Detail


Although going in for insurance in general terms is not a profit-making investment yet in certain cases is must and very useful. One such case is motor vehicle insurance. We take a case of car. It is noteworthy to know that buying insurance for car is a statutory requirement. With that is mandatory third-party insurance cover also. So if that be, why not to buy a fully comprehensive car insurance cover with third-party insurance cover. With a little more premium, full comprehensive insurance buys you every deterrent against car. In case of accident if your car is written off, you will be entitled for its replacement. Car is also covered for theft, loss, fire and accidental damage. In case you can afford a car, please do spend a little more to take an insurance policy as expensive as you can afford, so that in case of any unforeseen happening, the compensation is handsome enough to offer good financial security to you and, God forbid, to your dependents in case of your death.


The most charming part of claim vis- -vis full comprehensive car insurance with third-party insurance cover is realized if your car meets with an accident and there is involvement of a third-party, resulting in death. Here it is to underline that the third-party liability is wholly and solely is that of the insurance service provider. The liability during death can run up to lakhs and millions of rupees depending on the age, status, liability of the dead person’s dependents etc. The compensation due for other aspects like physical injuries, heart attack, burns, broken limbs, burns etc will also not be so less either. All the expenses will be borne by the service provider and the whole process in case of death-compensation takes approximately five years because it is settled only by court, which apparently involves so many departments, procedures and rules and regulations. Now for a moment if one just brings into thought all these expenses to be met by oneself, I am sure one will become a pauper.


Car accident claim is not a complex matter. From your side, renewal of policy has to be in time and document part is to be expedited and for the rest, all the personal assistance is offered by insurance company to settle the claim. The moment your car meets with the accident, immediately inform the fact of the accident to your insurer on their helpline number giving them the following details:-

Personal Details
€ Name
€ Address
€ Mobile no
€ Driver license number
€ Email I D
€ Insurance Policy Number

Vehicle of Policy Holder
€ Vehicle Year
€ Vehicle License
€ Vehicle Make
€ Vehicle Model
€ Plate Vehicle Color

Accident Information
€ Date and time of accident
€ Place of accident
€ Time of accident
€ Place of accident
€ City and State where the accident occurred

A Brief Account of the Accident
€ Driver of the vehicle
€ Name
€ Address and Contact No.
€ Was your vehicle towed?
€ Vehicles involved in the accident excluding your car
€ Type of damage caused to your car
€ Any Other Damage

The Premium Calculation is based on the following factors:

1. IDV of the vehicle
2. Cubic capacity of the vehicle
3. Zone of registration
4. Age of Vehicle

Additional Premium for:
(i) Electrical & electronic items
(iii) Add on cover
(iv) Extra Benefit

Insurance Application: Development, Support and Management

Insurers today face problems like increase in competition, stricter rules and regulations, lower profits, and growing needs and demands of the customers. Read how to face these challenges.

Insurers today face problems like increase in competition, stricter rules and regulations, lower profits, and growing needs and demands of the customers. These problems usually arise because of the constantly updated competition in areas like development, analytics, support and management of insurance application.

But the main challenge the insurance companies face today is solving bigger and broader issues in risk assessment and pricing by applying analytics and insurance application management.

All in all it is a three way procedure for insurance companies to leverage Information technology tools and solutions.

First comes the insurance application development. Innovation here is the key element. One needs to constantly keep on innovating to stay ahead of the competition and use latest and upgraded software.

When developing an apps it is important to design the processes and services clearly which the application is going to perform for it to be successful. Another thing that needs to be defined is the amount of data it will store and manage.

The processes that are involved before insurance appls development are defining the scope of the application, designing the project model, deriving various other models from the project model – this ensures the homogeneity of the application and converting the designs in to tools.

The next thing that is important is the insurance appls support. It is important that the application that has been developed is maintained in such a way that you can mold the applications along with the changing needs of your business, improve your performance and increase the application life. It is also required that the insurance application support adheres to SLAs and government regulations.

Legacy modernization is important for insurers. It helps them attain in better efficiency and uniformity in processes like underwriting rules & product pricing. It also helps the insurance companies cut excessive costs through better utilization of the insurance application and results in a greater level of integration.

Channel Management and Claims management are also important parts of insurance application management. Channel management is beneficial for the sales team of a company as it reduces manual processes like incentive calculation and better performance through R&R schemes.

Besides these, it is important to look beyond the static operational reports and also focus on collecting, storing, managing and analyzing data in an effective manner. In addition, one should always keep an eye open for new data anywhere.

For any insurance company thus it is important to find a solution provider who not only provides it the application but also provides additional support & maintenance and help in the management of application.

Filing An Insurance Claim With The Insurance Company Does Not Have Being Hard

It is necessary to have auto insurance when you push. The secret to success is to know which coverage you should get and the way a lot protection you will need. You can actually get frustrated when you attempt to consider all your selections for automobile insurance. However, the volume of selections does not have be overwhelming. Learn how to get the automobile insurance you need with the recommendations in this post.

When you don’t pay out your insurance plan high quality punctually, your insurance coverage could be canceled. Which can be a pricey mistake. Making gaps within your insurance policy can often be caused by transitioning providers or policies. After the insurer learns in regards to the spaces, they will likely boost your prices.

When you are thinking about including a teen for your car insurance, find out how much it would expense to place them on your insurance policy, vs. the amount it could expense to have them a separate plan. You may save money by purchasing your child a separate coverage the particular cars you have element into the price.

Travel when you can. By reduction of the volume of miles you are touring, your insurance company will be astounded by your sensible frame of mind. By telling your professional you are taking public transport, you can be in range to get a low cost that will lessen your top quality.

Acquiring additional items for yourself vehicle is something you shouldn’t be doing. You ought to take notice of the functions that make a difference on the operating of a automobile, not luxurious choices like heated car seats. Insurance coverage will almost never reimburse you for any of the tempting high end bonuses included in your car after obtain in case there is damage or theft.

With many other bills currently so substantial, it is a great idea to lower some of those following-industry updates that only increase aesthetic benefit. Luxurious items are good, nevertheless they truly aren’t that required. If ever you vehicle is taken or totaled, your insurance coverage won’t reimburse you for injuries completed to it.

Most suggests have regulations that expect you to carry correct automobile liability insurance when you travel. You can examine the legitimate demands to the status where you reside, and be sure that your insurance coverage fulfills the recognized bare minimum. Getting in an accident instead of having satisfactory insurance policy could have main fiscal consequences, and it may also be a breach of legislation.

Increase your deductible to save cash on the high quality. Undertaking this may be a worthwhile strategy for saving money should you be prepared to retail store money aside in case you do get directly into a crash. If you liked this article and you would certainly like to get even more details regarding temporary van insurance any driver kindly check out our web page. A very high insurance deductible will lead to you possessing a lower high quality.

Make an effort to get the lifestyle, home and automobile insurance from your identical business. You could be eligible for a a price reduction. It is possible to guarantee your property and all sorts of vehicles with 1 insurance company and conserve a good price of money. It is actually inside your interest for top level insurance coverage with the greatest price. However, separate policies can be as a way dependent on your situation.

It is actually not a good idea to buy your teen an auto. Instead, keep these things share a vehicle your family presently owns. Then, putting them in your automobile insurance will probably be significantly less costly. Numerous insurance providers offer discounts to college students who consistently accomplish excellent marks.

Covered with insurance folks should always make certain they are taken care of for ‘uninsured drivers’. This is a single facet of insurance that you should check into, particularly considering that it’s not much of a prerequisite in most states so they may not even offer you it to save you cash. In this way, you will be protected when an uninsured car owner damage your car.

To lower the costs on the automobile insurance, get a monitor, alert or immobilizer in your vehicle. Robbery connected with your vehicle takes on a crucial role in computing your insurance plan. When your automobile is robbery proofed it is possible to decrease your top quality.

Make an effort to pack your insurance plan to save money. Seek out these types of delivers, particularly those that pack vehicle and property insurance. Be sure to examine the cost of combining your property and automobile or insuring them separately prior to the choice to package.

Identifying the volume of insurance coverage settlement you require may be frustrating for a few. In case you have considerable amounts of cash stored up, liability insurance is a safe bet. Bear in mind, if you are faulted in the critical automobile accident, the healthcare accountability can achieve thousands and thousands of dollars. A lot of insurance coverage agents recommend increasing the minimal liability coverage mandated with the condition. You have to have enough insurance.

Make sure you really know what folks are stating about the insurance company you’re thinking of putting your signature on with. Purchasing automobile insurance isn’t constantly about finding the least expensive level. Occasionally insurance providers who offer you low rates are definitely the one’s that are challenging to cope with once you have had an accident.

Prior to signing up for insurance coverage with a brand new auto insurer, you ought to carefully collect facts and reviews around the organization. Reduced rates are essential, but intelligent purchasing a car insurance policy consists of more considerations. At times car insurance companies who offer extremely low monthly premiums are the types who don’t fully pay out their claims. These companies can be a soreness within the throat to cope with, so do your homework initial.

You will certainly be forced to pay over an individual having a excellent history, but all insurance companies will vary. Specific insurance companies are likely to support drivers who have a much less-than-ideal driving history.

To find the most affordable possible insurance plan level for the new auto, take time to collection each one of its safety features. Airbags and contra –secure braking systems are the kind of security features that may decrease your rates given that they enable you to stay away from main crash promises in the future. This is especially true if you mount these traits upon an older auto.

With any good luck, this informative article must have created you more confident with regards to deciding on an automobile policy. Being an well-informed consumer is a sensible way to fight your misunderstandings when looking for vehicle insurance.

Choosing Sensible Plans Of Car Insurance

Not having a valid insurance cover on your vehicle can generate points on your licence- and if you accumulate up to 12 points, you then get disqualified from driving- which can be a severe blow when you depend on your driving job to make a living. This kind of attitude to driving is not only dangerous it is also very costly. The Insurance firms ask many questions about the company, type of the automobile, the date of manufacturing along with other details connected with your driving skills prior to providing you with the insurance plan. Getting car insurance is one of the toughest decisions that many people are faced with. Nearly fifty percent of all people in the United Kingdom do not bother to compare a number of quotes and 25 percent renew their 4×4 car insurance instantly with the same insurer.

In general, a car insurance policy that meets only a state’s minimum requirements will be the cheapest policy available. Full coverage for two vehicles was costing us over $1,380 EVERY 6 MONTHS. Multi car insurance is available in comprehensive and third party cover. Medical payments or personal injury protection covers any medical expenses in case you or your passenger is injured in a road accident. In many cases, the advice of an independent broker may be the best option.

If you are unlucky enough to have your car stolen, there is a very simple test that usually reveals whether you have insurance coverage for this theft. Acquire an products of every one of them, to make sure you take advantage of these cost savers. There are many stipulations and regulations for each state, and sometimes for each county. You can try finding information about the companies offering insurance quote toll free numbers. All of us are unique that is why we need to consider the different kind of needs per person.

Firstly is that some form of car insurance is mandatory ie required by law in virtually every state and country in the world. t speed or drive erratically, or drivers that total less than 8,000 miles per year. In such cases, you may wish to switch insurance carriers to maintain the same level of customer service and insurance claim turnaround. Every auto insurance plan has basic parts just like other types of insurance. This determines the worthiness and risk the insurance provider assigns in your vehicle.

Try to find discounts for actions you already take. Insurance companies may not much care that you have 10 parking tickets, for example. Use the same insurance company for multiple types of insurance. In a similar vein, you will receive discounts if you maintain other policies at the same firm. Young drivers are considered tо be reckless and inexperienced wһіlе seniors аre considered to bе prone tо accidents due to health related problems.