Each year, thousands of regulatory changes are made that could materially affect the insurance industry, and the number is rising. In any given year, more than 40,000 regulations—including legislative bills, administrative rules, bulletins, advisories, alerts, directives, and interpretive guidance—must be vetted to determine if they affect the business of insurance. According to RegEd’s internal research, there were about 2,400 new or revised state regulations enacted or adopted that directly affected the insurance industry in 2013. In 2021, there were over 3,300, an increase of almost 40%. As the number escalates, new regulations themselves are becoming more complex, especially around risk […]
Continue readingMore TagMonth: November 2022
Market Conduct Exams: Best Practices to Ensure a Smooth Process and Stay Under the Radar for Future Examinations
By David Sheehan and Rebecca Vasquez, Esq. For an insurance company, the key objective of a market conduct examination (MCE) is to avoid it. As regulators pay more attention to problem areas, behaving well in the marketplace in the first place mitigates the chances of being examined. The No. 1 defense against an unscheduled market conduct examination is a documented and well managed compliance program, and companies that follow a few best practices find they can stay under the regulatory radar, and when they are selected for examination, they can be fully prepared to make it go smoothly. 1. Know […]
Continue readingMore Tag