2. v The Framework of Insurance Regulation Rex Bagwell Business Development Manager Insurance Productivity Services Kurt Jackson EVP of Sales GhostDraft

3. v Rex Bagwell Business Development Lead with Salient Commercial Solutions Worked directly in the insurance industry for 9 years as an agent, a district manager and now with Salient Commercial Solutions for the past 6 years Former Director IASA Board and on several other national committees

4. v Kurt Jackson Proven and accomplished sales leader with over 20 years of experience in the technology sector EVP of Sales and Marketing at GhostDraft IASA volunteer and committee member

5. v Key takeaways Insurance Regulation 101 Protecting the policyholder The impact of regulations on carriers Limits flexibility and rate of change How do regulations affect your ability to sell Do your homework Based on what you are selling

6. v Agenda The Purpose of Insurance Regulation Key Regulators The Structure of Insurance Regulation Key Legislation Regulations and Carrier Concerns Vendor Opportunities Case Studies

7. v The Purpose of Insurance Regulation Protect the insured (policyholder): State departments of insurance are accessible and accountable to the public and are sensitive to the needs and interests of the policyholder. State regulation works to protect insured and ensure promises made by insurers are kept.

8. v Other Insurance Regulation Assurances Availability and Equal Treatment to All Entitled Persons Fair Competition Insurer’s Solvency through Monitoring of Assets Availability of Insurance

9. v Key Regulators State Department of Insurance Establish and oversee state insurance departments Regularly review and revise state insurance laws Approve regulatory budgets Have impact on market entry of new carriers Audit insurance companies National Association of Insurance Commissioners (NAIC) Advisory body and service provider for state insurance departments to: Pool scarce resources Discuss issues of common concern Align their oversight of the industry

10. v The Structure of Insurance Regulation Company Licensing Producer Licensing Product Regulation Financial Regulation Market Regulation Consumer Services

11. v Regulatory Measures Guaranty Funds Yellow Book Oversight Statistical Reporting

12. v State Revenue from Regulation In 2000 states collected more than $10.4 billion in revenues from insurance sources:  $880 million (8.4%) went to regulate the business of insurance  Remaining $9.6 billion went to state general funds for other purposes  Effectively paying a premium tax

13. v Insurance for Those Who Can’t Get Insurance Assigned Risk Pool FAIR Plans Workers Compensation Funds Windstorm / Hail Pools & Beach Plans Healthcare *Associations for each

14. v Key Legislation 1945 ‐ McCarren‐Ferguson Act1996 – Health Insurance Portability and Accountability Act (HIPAA)1999 ‐ Financial Modernization Act (GLB)2002 – Sarbanes‐Oxley Act (affects publicly held carriers)2010 - Affordable Healthcare Act

15. v Regulations and Carrier Concerns Licensing Product Ratings Financial Stability Market Conduct Exams Insurer Complaints Relationships with Commissioners Liberty Mutual Insurance TV Commercial – New Car Replacement and Accident Forgiveness

16. v Implications of Regulations on Carriers  Why do companies pull out of states? Florida Insurance Market  Understanding of prospects markets they serve and the regulatory climate  PA Commissioner interested in holding board accountable  Often new regulations are delayed six months before rollout

17. v Vendor Opportunities Understand carrier ability to use your product or service Forms regulation management Address carrier concerns with regulations Keep up with changing regulations Reduce risk and increase regulatory accuracy Understand regulations to get credibility with executives

18. v Case Studies Producer Lifecycle Management  Licensing and compliance, ensure authorization to sell Customer Communication Management  Less customer complaints through effective communications  Forms Compliance Statistical Reporting Product Development / Compliance

19. v Future of Regulations Federal Government moving into regulations? Regulation Resources: Insurance Journal: http://www.insurancejournal.com/news/national/2015/01/08/353430.htm http://www.insurancejournal.com/news/national/2015/01/08/353430.htm NAIC: http://www.naic.org/documents/consumer_state_reg_brief.pdf http://www.naic.org/documents/consumer_state_reg_brief.pdf

20. v Key Takeaways Insurance Regulation 101 Protecting the policyholder The impact of regulations on carriers Limits flexibility and rate of change How do regulations affect your ability to sell Do your homework Based on what you are selling