Thinking Ahead

Treasury Prepares to Lay Down a Marker for the Future (Part 2)

2.2.1. What are the costs and benefits of State-based regulation of the insurance industry?

The only way to answer this question is with another question: compared to what? It seems clear that some insurance regulation at the state level is better than no regulation at all. Insurance is a contractual arrangement, and it is difficult for ordinary consumers to negotiate their own contracts or to understand the terms of a contract furnished by an insurer. Even if the courts are lenient in giving insured parties the benefit of the doubt in contract interpretation, consumer protection at the state level in the form of approving contracts for use in the state is better from the standpoint of consumers than no state regulation...

American Enterprise Institute: Thinking Ahead - Treasury Prepares to Lay Down a Marker for the Future (Part 2)