TheInsuranceIndustryPast,Present,andFuture.pdfVIP

The Insurance Industry: Past, Present, and Future Lisa Blair Blairlr1@appstate.edu The Insurance Industry: Past, Present, and Future Insurance is a dynamic industry that changes in response to state, national, and international events. Throughout the history of the United States, two main issues in insurance have existed and have been examined multiple times through Congressional legislation and Supreme Court rulings. These two issues are that of state versus federal regulation and the appropriate scope of insurance companies: whether companies should be strictly limited to engaging in only insurance matters or if it is appropriate for a company to engage in a combination of insurance, investment banking, and commercial banking activities. Both of these issues have been addressed many times throughout history and it is unlikely that they are in their perfect, concrete form today. As times change, so do the views on these issues. Recently, the Dodd-Frank Act was passed by Congress and signed into affect by the President. This current piece of legislation addresses many things, including federal regulation of the insurance industry. Examining past legislation and understanding current legislation can help one to comprehend the insurance industry. An issue that has had the attention of the insurance industry since 1869 is the issue of state versus federal regulation. Specifically, this debate raises the issue as to whether insurance is interstate commerce and therefore can be subjected to federal regulation. The year 1869 first documents this debate, with the case of Paul versus Virginia. In 1866 the state of Virginia passed a law that required all out-of-state insurance companies doing business in the state of Virginia to obtain a license to engage in such actions. Samuel Paul, acting as an agent of several New