Maternal, Child & Family Health
Through laws on incorporation and laws on the licensing of insurance coverage firms, states regulate the organizational structure and monetary affairs of insurance corporations. Most states allow insurance companies to arrange underneath general corporate statutes and to comply with business-particular requirements by acquiring a license, generally known as a certificate of authority. As envisioned by the drafters of the McCarran-Ferguson Act, the states have played the dominant role in regulating the medical insurance products and their vendors which may be chosen by employers to offer insurance funded well being benefits. Logically, regulation by 50 states permits considerable variation within the scope and intensity of regulation.
How Does Indian Affairs Develop Or Revise Regulations?
The role of the states as regulators of insurance evolved from the nineteenth-century view expressed by the Supreme Court of the United States in Paul v. Virginia1 that “commerce” under the Commerce Clause of the U.S. Because an insurance coverage contract was not interstate commerce, the Supreme Court upheld state regulation of insurance within state borders. With the blessing of the Supreme Court, the states for the next seventy five years integrated home insurance firms of each kind, regulated and taxed foreign insurance firms inside state borders, licensed their products, and regulated the connection between the insurer and the insured.
The practical consequences of choosing self-insured worker health benefits are discussed within the subsequent section of this paper. The purpose of licensing is to guard the general public towards ineptly managed or … Read More