Areas of Federal Regulation on Auto insurance in Florida


car insurance floridaThe federal government is extensively involved with insurance provider regulation in the following areas breaking news:
a. SEC regulations affect some aspects of insurance accounting and also to companies with publicly owned stock.
b. Annuity contracts are regulated under the investment Companies Act of 1940.
c. Federal Trade Commission regulates insurance company mergers, advertising of catalog shopping insurance, etc.
d. HUD, with the Federal Insurance Administrator, regulates the flood, crime, FAIR Plan and riot reinsurance programs.
e. The Interstate Commerce Commission specifies coverages required of interstate carriers.
f.  An international agreement negotiated by the authorities establishes civil liability for airline passengers in international travel.
g. The Price-Anderson Act determines limits of liability and establishes absolute liability on operators of nuclear reactors.
h. The Sba administers the Surety Bond Guarantee Program

State vs. Federal Regulation

The issue of if the public interest is best served by federal or state regulation is an open- ended question. An incomplete review of the advantages and disadvantages pertaining to each degree of authority is set forth below:’4
Arguments for Federal Regulation

Proponents of federal regulation contend that: state regulation is parochial; state regulation does 59
not have uniformity; assuring regulation is costly. Since insurance companies must deal with numerous insurance departments, each having different requirements , costly duplication is inevitable. It’s further contended that states cannot  effectively regulate interstate companies which state insurance commissioners are unqualified additional resources.

Arguments Against Federal Regulation

Advocates of state regulation contend that state regulation is attentive to local conditions and needs; state regulation is definitely an established and known entity; and state regulation encourages innovation and experimentation. It is also claimed that decentralization and dispersion of political power is, by itself, an important value inside a democratic society.

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