There is a considerable area in which the states exercise regulatory authority. State statutes, of necessity, have a superior amount of uniformity including georgia auto insurance laws from www.georgiacarinsurancequotes.net. Included one of the regulated areas are the following:
Company Formation. Minimum capital and paid-in surplus requirements for stock companies; minimum deposits or guaranty fund and a minimum number and dollar worth of applications for insurance when it comes to mutual information mill requirements per statute. These regulations are for that 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 financial condition.
Investments. Insurance companies are restricted with regards to the type and excellence of their investments. Life insurers, for instance, are limited regarding common stock investments, with the exception of cases of pension plans and policies with variable face levels of insurance.
Rate Regulation. Life insurance rates generally aren’t directly regulated but those for other classes of coverage are. It’s because the truth that property and liability insurance rates are often made in concert, and property and liability insurance rates tend to be more difficult to understand and to establish. The goal of rate regulation would be to require rates which are adequate, not excessive, and never unfairly discriminatory.
Other Areas of Regulation and Taxation. In addition to the areas 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 the like.
Insurance providers are subject to income tax and a state gross premium tax. The gross premium tax is easily the most common of levies on insurance providers. Gross premiums are refined by 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 percent. The speed is often more for foreign companies. They’re also subject to licensing fees, filing fees, property taxes along with other minor levies.