第十二章节保险监管幻灯片.pptVIP

Regulated Activities by the States Guarantee funds In all states Designed to protect policy owners from insolvent insurance companies Rate Regulation Rates are to be adequate, fair, and not unfairly discriminatory File and use, open rating, prior approval systems * * Regulated Activities by the States Accounting Procedures Expenses not deferred - surplus underestimated Only admitted assets allowed - conservative estimate of assets Unearned premium reserve Loss reserves Policy reserves - life insurance Policy Form, Approval, and Expense Limitations Form must be approved by the states Rates (prices) are regulated Commissions can be limited * * Activities Regulated By The States Licensing Companies, Agents and Brokers Company must be licensed in state Agent/ Broker must be licensed When insurance in state not available can go to non-admitted insurer through excess and surplus lines agent Consumer Complaints State complaint hot lines Complaint ratios are kept States can terminate license of company * * Regulated Activities State premium taxation, similar to sales tax but on insurance contracts Complex formulas for Federal Income Taxation * * 谢谢大家! * * * Four main reasons are proposed for insurance regulation and they are expanded on with the following slides. The four main reasons for insurance solvency are: Insurer Solvency Unequal Knowledge and Bargaining Power Problem of Pricing Promotion of Social Goals * Insurer solvency is the main concern of regulators. They need to make sure that the insurers are in a financial position to meet obligations in the contracts. This is different from normal unregulated businesses because of the financial damage that results from insolvency. Since insurance is a promise to be delivered in the future, the costs of delivering on that promise is unknown at the time the contract is sold. Regulators must act in the public’s interest and make sure that the company has sufficient funds to pay all claims in the future. If an insurer