1. Insurance Regulation Elizabeth Kelleher Dwyer, Esq.
Rhode Island Superintendent of Insurance

2. History of Insurance Regulation
Insurance has existed for centuries with evidence of contracts as early as the 12th century
Great Fire of London of 1666 helped develop insurance in England which was replicated in America
First incorporated insurer in the United States – Philadelphia Contributionship 1752 still operating today
Originally based upon membership in an organization

3. History of Insurance Regulation
In the early 1800s, individual states began chartering insurance companies
New York began financial regulation of insurance companies in 1828 and the statutes it enacted became models for the remainder of the country
New Hampshire appointed first insurance commissioner in 1851
By 1852, seven additional states established insurance regulators, including Massachusetts, Connecticut and Vermont
Rhode Island first insurance regulator in 1856 with the establishment of a three-member panel

4. History of Insurance Regulation
National Association of Insurance Commissioners established in 1871
1871 was also the year of the Great Chicago Fire which caused the financial impairment of many nationally significant insurers

5. How Did Insurance Become Primarily Regulated by the States?
Paul v. Virginia, 75 U.S. 168 (1869): US Supreme Court holds that “Issuing a policy of insurance is not a transaction of commerce. The policies are simply contracts of indemnity against loss by fire …”
United States v. Southeastern Aviation Underwriters, 322 U.S. 533 (1944) overruled Paul v. Virginia and held that insurance did fall under the Commerce Clause

6. 1945: McCarran Ferguson Act – Congress enacted statute which delegates the regulation of insurance to the states.
Treasury Report reaffirms primacy of state regulation
Intrusion on state delegation –
Affordable Care Act
Federal Insurance Office
NARAB
Dodd-Frank

7. Insurance Superintendent
Rhode Island Insurance Division
Insurance Superintendent
Financial
Surveillance
Market
Conduct
Agent
Licensing
Rates and
Forms
Consumer
Protection
Other
Functions
Collect and analyze (desk audits) of financial data
Classify and identify troubled companies
Review company transactions
Financial examinations
Company licensing
Legal
Public Affairs
Legislative Policy
Complaints
Assistance
Education
Life/Health Policy Form and Premium Rate review
Property/ Casualty Policy Form and Premium Rate review
SERFF
IIPRC
Licensing and Admissions
Agents and Brokers
Review and analyze non- financial data
Market Analysis
Market Conduct
Examinations

8. NAIC Structure

9. State Ahead
Big Data
Cybersecurity
International
Health Care

10. Roll of Federal Government in Insurance

11. Questions?