1. Seminar NAIC/ASSAL/SVS
Regulation & Supervision of Market Conduct
The Importance of
Market Oversight
© 2014 National Association of Insurance Commissioners

2. Public Policy reasons for insurance regulation
Insurance impacts the public welfare
The cost of insurance is a large consumer expenditure
Consumers may have limited knowledge
Consumer actions alone may not correct inappropriate market practices

3. Contractual nature of insurance Policies
Insurance policies are complicated contracts
Insurance policies are aleatory contracts
Insurance policies are contracts of adhesion

4. Goal of market regulation
The goal of market regulation is to protect consumers by identifying and correcting insurer operating practices that are in conflict with contract provisions, state laws, rules, regulations, or orders of the Commissioner.

5. Regulator Activity Before the Sale
Company Licensing
Producer Licensing
Rate and Form Review

6. Regulator Activity After the Sale
Consumer Inquiries and Complaints
Market Analysis
Investigations
Market Conduct Examinations

7. QUESTIONS/COMMENTS