There is a considerable area where the states exercise regulatory authority. State statutes, of necessity, have a superior degree of uniformity including how much is car insurance in georgia 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 worth of applications for insurance when it comes to mutual information mill requirements specified by statute. These regulations are for that primary purpose of 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 regards to the type and quality of their investments. Life insurers, for instance, are limited regarding common stock investments, with the exception of cases of pension plans and policies with variable face amounts of insurance.
Rate Regulation. Life insurance coverage rates in general are not 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 tend to be more difficult to understand and also to establish. The goal of rate regulation is to require rates that are adequate, not excessive, and not unfairly discriminatory.
Other Areas of Regulation and Taxation. In addition to the areas of insurance regulation cited above, america also regulate the qualifications of officers; qualifications and licensing of producers; qualifications and licensing of claims personnel; market surveillance examinations, and so on.
Insurance companies are subject to income taxes along with a state gross premium tax. The gross premium tax is 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. Around the adjusted gross premiums, domestic companies pay a set tax which may vary as much as 3 %. The rate is frequently more for foreign companies. They are also subject to licensing fees, filing fees, property taxes along with other minor levies.