There’s a considerable area where the states exercise regulatory authority. State statutes, of necessity, have a superior degree of uniformity including georgia auto insurance companies  from www.georgiacarinsurancequotes.net. Included among the regulated areas are the following:

Company Formation. Minimum capital and paid-in surplus requirements for stock companies; minimum deposits or guaranty fund along with a minimum number and dollar worth of applications for insurance in the case of mutual information mill requirements per statute. These regulations are for the primary purpose of maintaining solvency.

Financial Examination. All states require that insurance providers transacting business within their borders submit annual statements concerning their operations and personal finances.

Investments. Insurance providers are restricted with respect to the type and excellence of their investments. Life insurers, for instance, are limited as to common stock investments, except in installments of pension plans and policies with variable face levels of insurance.

Rate Regulation. Life insurance rates generally are not directly regulated but those for other classes of coverage are. It’s because the truth that property and liability insurance rates in many cases are produced in concert, and property and liability insurance rates tend to be more difficult to understand and also to establish. The goal of rate regulation would be to require rates which are adequate, not excessive, and not unfairly discriminatory.

Other parts of Regulation and Taxation. As well as the regions of insurance regulation cited above, america also regulate the qualifications of officers; qualifications and licensing of producers; qualifications and licensing of claims personnel; market surveillance examinations, and so on.

Insurance providers are susceptible to income tax along with a state gross premium tax. The gross premium tax is easily the most common of levies on insurance providers. Gross premiums are refined by looking into making certain adjustments for canceled and rejected policies, reinsurance premiums, and dividends. On the adjusted gross premiums, domestic companies pay a flat tax which may vary up to 3 %. The speed is often more for foreign companies. They’re also subject to licensing fees, filing fees, property taxes along with other minor levies.

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