How has insurance regulation evolved in recent years?
A. Over the past two decades, insurance regulation has evolved to become similar in many aspects. The most similar, cooperative and collaborative area of insurance regulation is in the area of solvency. The states have established a uniform system of laws, rules, regulations and mutual cooperation that every state strives to adhere to through the National Association of Insurance Commissioners Solvency Accreditation Program. As of March 2009, fifty departments were accredited. Furthermore, since the program began, all 50 states and the District of Columbia have adopted laws and regulations designed to bring them closer to meeting the NAIC’s accreditation standards. Q. How do insurance regulators monitor a company’s capital? A. State insurance regulators have applied conservative requirements on insurance entities, which have bolstered the life insurers to remain solvent in these difficult economic times. First, state insurance regulators apply more conservative accounting requirements
