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Insurance Market Regulation

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I need some help with answering the following questions:

- Describe the main participants in the insurance market.
- Explain how the economic theory of supply and demand applies to the insurance market.
- Describe how the courts, the law, and the insurance commissioner provide consumer protection in the insurance market.
- Define the term regulation and give four reasons why the insurance industry and the insurance transaction are comprehensively regulated.
- Identify the important landmarks in the history of insurance regulation.
- Explain the role the National Association of Insurance Commissioners plays in insurance regulation.
- Describe the regulatory activities of state insurance departments including solvency regulation, rate regulation, investment regulation, and regulation of agents and company officers.

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The expert describes the main participants in the insurance market is examined. How the economic theory of supply and demand applies to the insurance market is determined.

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Here is some help to get you started:

- Describe the main participants in the insurance market: The two main participants in the insurance market are investor vs speculator and institution vs retail industry. The investor vs speculator is when an investor invest money/premiums solely to make a quick profit. The institution vs retail industry is when a business (banks, insurance companies, mutual fund companies) invests in long-term securities moreso to have ownership, not to make a quick profit.

- Explain how the economic theory of supply and demand applies to the insurance market: If a participant is on the supply side, they may have excess funds to invest in the insurance market, whereas, if a participant is on the demand side, the participant will not have access money to invest and therefore, may need to borrow money.

- Describe how the courts, the law, and the insurance commissioner provide consumer protection in the insurance market: There are times in which a consumer's insurance claims are denied and therefore, the policy holder must get the courts, law, and insurance commissioners involved. Once the a complaint is made, insurance lawyers can review the insurance policies to figure out if the consumer has a case or not.

- Define the term regulation and give four reasons why the insurance industry and the insurance transaction are comprehensively regulated: According to Merriam-Weberster.com, regulation is an authoritative rule dealing with details or procedure. The insurance industry and insurance transactions are regulated because 1) Inssurance availability, 2) Avoid unfair practices, 3) to promote beneficial ...

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