There is a considerable area where the states exercise regulatory authority. State statutes, of necessity, have a high degree of uniformity including car insurance companies 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 value of applications for insurance when it comes to mutual companies are requirements per statute. These regulations are for the primary purpose of maintaining solvency.
Financial Examination. All states require that insurance companies transacting business inside 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 example, are restricted regarding common stock investments, with the exception of installments of pension plans and policies with variable face amounts of insurance.
Rate Regulation. Life insurance rates generally are not directly regulated but those for other classes of coverage are. This is due to the fact that property and insurance rates in many cases are produced in concert, and property and liability insurance rates are more difficult to understand and to establish. The aim of rate regulation would be to require rates which are adequate, not excessive, and never unfairly discriminatory.
Other parts of Regulation and Taxation. As well as the areas of insurance regulation cited above, the states also regulate the qualifications of officers; qualifications and licensing of producers; qualifications and licensing of claims personnel; market surveillance examinations, and the like.
Insurance providers are subject to income taxes and a state gross premium tax. The gross premium tax is easily the most common of all levies on insurance companies. Gross premiums are refined by looking into making certain adjustments for canceled and rejected policies, reinsurance premiums, and dividends. On the adjusted gross premiums, domestic companies pay a set tax which might vary as much as 3 percent. The speed is frequently more for foreign companies. They’re also subject to licensing fees, filing fees, property taxes and other minor levies.