There is a considerable area in which the states exercise regulatory authority. State statutes, of necessity, have a superior degree of uniformity including georgia auto insurance requirements from www.georgiacarinsurancequotes.net. Included among the regulated areas would be 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 value of applications for insurance when it comes to mutual companies are requirements per statute. These regulations are for the primary reason for maintaining solvency.
Financial Examination. All states require that insurance providers transacting business within their borders submit annual statements concerning their operations and personal finances.
Investments. Insurance providers are restricted with respect to the type and excellence of their investments. Life insurers, for example, are restricted as to common stock investments, except in installments of pension plans and policies with variable face amounts of insurance.
Rate Regulation. Life insurance rates generally aren’t directly regulated but those for other classes of coverage are. This is due to the truth that property and liability insurance rates in many cases are produced in concert, and property and liability insurance rates are more obscure and also to establish. The aim of rate regulation would be to require rates that are adequate, not excessive, and never unfairly discriminatory.
Other Areas of Regulation and Taxation. As well as 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 so on.
Insurance providers are susceptible to income taxes along with a state gross premium tax. The gross premium tax is easily the most common of levies on insurance providers. Gross premiums are refined by looking into making certain adjustments for canceled and rejected policies, reinsurance premiums, and dividends. On the adjusted gross premiums, domestic companies pay a flat tax which might vary up to 3 %. The rate is frequently more for foreign companies. They’re also susceptible to licensing fees, filing fees, property taxes and other minor levies.