Term
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Definition
| Decided by U.S. Supreme Court, involved onces state's attempt to regulate an insurance company domiciled in another state. The Supreme Court sided agains the insurance company, ruling that the salse and issuance of insruacne is not interstate commerce, thus upholding the right of states to regulate insurance. |
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Term
| 1905 The Armstrong Investigation |
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Definition
| Result was the New York Insurance Code, which set a precedent and pattern for insurance regulartion by other states throughtout the country. |
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Term
| 1944 Uinsted STates v. Southeastern Underwriters Association (SEUA) |
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Definition
| The court ruled that the businesfs of insurance is subject to a series federal laws - many of which were in conflict with existing state laws - and that insurance is a form of interstate commerce to be regulated by federal goverment. This decision did not affect the power of states to regulate insurance, but id did nullify state laws that were in conflict with federal legsislation. The result of the SEUA case was to shift the balance of regulatory control to the federal goverment. |
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Term
| 1958 Intervention by the FTC |
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Definition
| in the mid-1950's, the FTC sought control the advertising and sales literature used by health industry. in 1958, the Supreme Court held that McCarran- Ferguson Act disallowed such supervisition by the FTC, a federal agency. Additional attmepts have been made by the FTC to force further federeal control but none have been successful. |
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Term
| 1959 Intervention by the SEC |
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Definition
| The issue was variable unnuities. the Supreme Court ruled taht federal securities laws applied to insurers that issued vaiable annuities and thus required these insurers to conform to both SEC and state regulation. The SEC also regulates variable life insurance. |
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Term
| 1970 Fair Credit Reporting Act |
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Definition
| In an attempt to protect an individual's right to privacy, the federal goverment passed the Fair Credit Reporting Act, which requires fair and accurate reporting of information about consumers, including applications for insruance. Insureres must inform appplicatns about any investigations taht are being made. If any consumer report is sued to deny coverage or charger higher rates, the insurere must furnish to the applicatn the name of the reporting agency conducting the investigation. Any insurance compnay that fails to comply with this act is laiable to the consumer for actual and punitive damages. |
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Term
| 1999 Financial Services Modernizaition Act |
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Definition
| The Glass- Steagall act of 1933 which barred common ownership of banks, insurance companies and securities firms and erected a regulatory wall betweeen banks and nonfinancial companies,came under repeated attack in the 1980'2. in 1999 congress passed the financial services moderinaition act wihc repealed glass stagall. Under this new legislation, commerical banks, investment banks, retail brokerages, and insurance companies can now enter each other's lines of business. |
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Term
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Definition
24 hours every 2 years
Agents who have been licensed for 6 or more years must complete 20 hours evrery 2 years. |
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Term
| 1945 The McCarran - Ferguson Act. |
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Definition
| This law made it clear that continued regulation of insruacne by the states was in the publics best interst. This act led each state to re3vise its insuracne lasws to conform to the federal law. Today the insurance industry is considered to be state regualted. |
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Term
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Definition
provides that, for certain reason such as misstatements on the aplication, the company may void a life insurance policy after it has been in force during the insured's lifetime, usually one or two years after issue.
Example: Concealment of smoking |
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