As an insurer, you’re likely well aware of the ever-changing insurance rules and regulations that you must abide by to remain in compliance with local, state or federal laws.
Keeping track of all of these can prove challenging. Insurers will want to refresh their memories of these acts as violating them can be pretty costly.
Notable insurance-related laws instituted in recent years
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) went to effect in 2010. It established a communication pathway through which state insurance regulators could communicate with federal regulators regarding insurance matters of both national and international importance.
The Dodd-Frank Act also aimed to oversee underserved populations’ access to affordable insurance, as well as helping government officials identify regulatory gaps for insurers that could avert financial crises.
Another bill, the Terrorism Risk Insurance Act (TRIA) went into effect in 2002 to provide Treasury-backed reimbursements to insurers who offered coverage in high-population U.S. cities and businesses operating in certain industries. It also established caps on what these entities could recover.
The Affordable Care Act (ACA), which went into effect in 2010, eliminated the preexisting condition exclusions that once applied to health insurance carriers. It made it a requirement for individuals to obtain health insurance to avoid paying a tax penalty. It also eliminated a lifetime cap on benefits and expanded medical benefits in other areas.
Another piece of legislation, the Non-admitted and Reinsurance Reform Act (NRRA), passed in 2011. It set a uniform, national standard by which each state could regulate non-admitted insurance products. It now only allows an insured’s home state to regulate this and assess taxes to a surplus insurance policy line.
Stay on top of new insurance rules and regulations
You may unnecessarily expose your insurance company to government fines and civil litigation if you chose not to remain in the know about new insurance regulations and rules. An attorney who is well-experienced in the insurance industry can help you remain in compliance with existing laws and advise you of your options should you risk a violation.