There is a considerable area where the states exercise regulatory authority. State statutes, of necessity, have a superior amount of uniformity including cheap auto insurance in georgia from www.georgiacarinsurancequotes.net. Included among the regulated areas would be 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 value of applications for insurance in the case of mutual companies are requirements specified by statute. These regulations are for the primary reason for maintaining solvency.
Financial Examination. All states require that insurance companies transacting business within their borders submit annual statements concerning their operations and personal finances.
Investments. Insurance companies are restricted with regards to the type and quality of their investments. Life insurers, for instance, are restricted regarding common stock investments, except in cases of pension plans and policies with variable face amounts of insurance.
Rate Regulation. Life insurance rates in general aren’t 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 insurance rates tend to be more obscure and to establish. The goal of rate regulation would be to require rates which are adequate, not excessive, and never unfairly discriminatory.
Other parts of Regulation and Taxation. In addition to the regions of insurance regulation cited above, the states also regulate the qualifications of officers; qualifications and licensing of producers; qualifications and licensing of claims personnel; market surveillance examinations, and so on.
Insurance companies are subject to income taxes along with a state gross premium tax. The gross premium tax is easily the most common of all levies on insurance providers. Gross premiums are refined by looking into making certain adjustments for canceled and rejected policies, reinsurance premiums, and dividends. Around the adjusted gross premiums, domestic companies pay a flat tax which may vary as much as 3 %. The rate is frequently more for foreign companies. They’re also subject to licensing fees, filing fees, property taxes and other minor levies.