State Insurance Regulation
Unlike banking or securities, insurance is regulated at the STATE level, not federal. This means 50+ different regulatory regimes with different rules, mandates, and consumer protections.
Rate Approval Systems
Prior Approval States: Insurers must submit rates to the state insurance department and receive approval BEFORE using them. Examples: New York, California, Texas, Florida. Offers strongest consumer protection but can slow innovation. File-and-Use States: Insurers file rates with the state and can us
State Guaranty Associations
What happens if your insurance company goes bankrupt? State guaranty associations step in to pay claims up to statutory limits. Typical coverage limits: $300,000 per claim for most lines. Life insurance: varies by state, typically $300,000 per policy. Health insurance: ongoing claims are covered dur
State-Specific Mandated Benefits
States mandate coverage for specific conditions/treatments beyond federal ACA requirements: Infertility coverage: 19 states mandate some coverage, with Illinois being the most comprehensive (4 egg retrievals, unlimited transfers, LGBTQ+ inclusive since 2021). Mental health parity: Federal MHPAEA req