1. Regulation
1.1 Regulation of insurers and
reinsurers
Historical background
The insurance regulatory framework in the United States has a
rich history that dates back to the 19th century. In the 1869
Paul v. Virginia case, the Supreme Court held that
"issuing a policy of insurance is not a transaction of
commerce" and, as such, regulating and taxing the insurance
business is a state responsibility. The states immediately began
brainstorming regulatory approaches, which led to the 1871
formation of the National Insurance Convention, now known as the
National Association of Insurance Commissioners (NAIC).
The NAIC
The NAIC is the US standard-setting and regulatory support
organisation, created and governed by the 56 chief insurance
regulators from the states, the District of Columbia and five US
territories. Through the NAIC, state insurance regulators establish
standards and best practices, conduct peer review and co-ordinate
their regulatory oversight.
