Insurance and reinsurance—USA—Q&A guide

The following Insurance & Reinsurance practice note provides comprehensive and up to date legal information covering:

  • Insurance and reinsurance—USA—Q&A guide
  • 1. Identify the regulatory agencies responsible for regulating insurance and reinsurance companies.
  • 2. What are the requirements for formation and licensing of new insurance and reinsurance companies?
  • 3. What licences, authorisations or qualifications are required for insurance and reinsurance companies to conduct business?
  • 4. What are the minimum qualification requirements for officers and directors of insurance and reinsurance companies?
  • 5. What are the capital and surplus requirements for insurance and reinsurance companies?
  • 6. What are the requirements with respect to reserves maintained by insurance and reinsurance companies?
  • 7. What are the regulatory requirements with respect to insurance products offered for sale? Are some products regulated by multiple agencies?
  • 8. What are the frequency, types and scope of financial, market conduct or other periodic examinations of insurance and reinsurance companies?
  • 9. What are the rules on the kinds and amounts of investments that insurance and reinsurance companies may make?
  • More...

Insurance and reinsurance—USA—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to insurance and reinsurance in USA published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: Sullivan & Cromwell LLP—William D. Torchiana; Mark F. Rosenberg; Marion Leydier

1. Identify the regulatory agencies responsible for regulating insurance and reinsurance companies.

In the United States, the insurance business (including reinsurance) is primarily regulated at the state level. Each state has an insurance department and laws, regulations, policies and procedures that regulate virtually every aspect of the operations of insurers and reinsurers. States also regulate the actions of insurance intermediaries, including insurance producers, agents, brokers, reinsurance intermediaries and third-party administrators.

The Supreme Court held in United States v South-Eastern Underwriters Association, 322 US 533 (1944), that Congress had the power to regulate the insurance industry. In response, Congress enacted the McCarran-Ferguson Act, which, broadly speaking, left regulatory control over insurance to the states, as long as their laws and regulations do not conflict with federal antitrust laws on rate fixing, rate discrimination and monopolies. Some national insurance programmes, including, but not limited to, the Terrorism Risk Insurance Act, the National Flood Insurance Program, the Federal Crop Insurance Program and the Longshore and Harbor Workers' Compensation Act, were created by federal act, and are subject to regulation by the federal government with

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