State insurance regulation may be broadly divided into two categories. The first generally encompasses those laws that are directed toward protecting the insurance fund so that a policy holder can be secure in his reliance on his insurer's ability to pay its obligations. An assumption underlying this Note is that such regulation, despite its imperfection and effect on competition, is both socially and economically desirable. Thus the problems with state regulation aimed at ensuring the financial reliability and solvency of insurance companies" will not be considered here. Rather, this section of the Note will outline the second category of state insurance regulation, which governs pricing and business practices more directly affecting competition. Some general problems relating to state regulation also will be discussed. This section and the following section, which assesses the competitive performance of the insurance industry under state regulation, are further limited in that they analyze only the nonlife segment of the industry. Significant differences in price competition and regulation in particular warrant the exclusion of life insurance companies from consideration."
Laurence M. Hamric,
The McCarran-Ferguson Act: A Time for Procompetitive Reform,
29 Vanderbilt Law Review
Available at: https://scholarship.law.vanderbilt.edu/vlr/vol29/iss5/5