What is the primary function of a state insurance regulatory agency?

The primary function of a state insurance regulatory agency is to protect consumers and maintain marketplace integrity. These agencies serve as watchdogs for the insurance industry, ensuring that companies operate fairly, transparently, and in accordance with the laws and regulations that govern insurance practices. By overseeing the activities of insurers, regulatory agencies help to ensure that consumers are treated fairly and that they have the necessary information to make informed decisions about purchasing insurance.

Maintaining marketplace integrity involves monitoring the financial health of insurance companies, ensuring that they are solvent and capable of meeting their policyholder obligations. This regulatory oversight helps to foster a competitive insurance market where consumers can have confidence in their providers. The agency also enforces consumer protection laws, investigates consumer complaints, and provides resources to help consumers understand their rights and responsibilities in the insurance marketplace.

While promoting insurance companies, providing insurance education, and approving transactions can be aspects of an agency's broader responsibilities, the core mission remains focused on consumer protection and ensuring the proper functioning of the insurance market.