1. 63333 POINTS
    Peggy Mace, Certified Senior Advisor (CSA)®PRO
    CEO, Outlook Life, Inc, Most of the U.S.
    States regulate life insurance companies through insurance commissioners, who generally follow standards set by the NAIC (National Association of Insurance Commissioners). There are a lot of regulations that insurance companies must follow. E.g. they must get approval to even offer certain products in any particular state. This makes insurance companies very reliable and able to pay out when death occurs many years after the policy is taken out.
    Answered on December 4, 2013
  2. 4249 POINTS
    Gary LanePRO
    President, Lane Independent Agency, Southern California
    Here in California, the Insurance Commissioner regulates Life Insurance Companies. If you had a problem with your company, I urge you to report them so it can be made right. New York Life, the company I am an Agent for, has the highest ratings. Please call me for help of any kind. Gary Lane, 949 797 2424. Thank you.
    Answered on December 6, 2013
  3. 7479 POINTS
    Steve KobrinPRO
    President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
    Life insurance is regulated by state insurance departments. These agencies license or certify companies to sell life insurance in their state. And they do so according to their own standards.

    This means that not every company can sell their products in every state. It also means that not every product from every company would be approved by that state insurance department.

    Not only that: it means that certain sales procedures, such as the replacement of existing policies, follow different protocols.

    Your broker must work with his general agent and guide you through these state regulations.

    There is no federal agency regulating the life insurance industry, and I think that is a good thing. It simply is not needed. Excessive government regulation would only be cumbersome and costly. One reason why federal intervention is not needed is because the industry does a very good job of regulating itself.

    The National Association of Insurance Commissioners acts to promote industry -wide standards and best practices. The chief insurance regulators from all 50 states, the District of Columbia, and US territories all work together. They coordinate oversight of broker market conduct, consumer protection, and institutional viability.

    So you have kind of a state-based national system of insurance regulation.
    Want to learn more? Review my blog at planrisklive.com.
    Answered on October 4, 2015
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