Since American Indians are now taxed, they are counted for purposes of apportionment. The 17th Amendment provided for the direct popular election of Senators. The filling of vacancies was altered by the 17th amendment.
History of insurance The first insurance company in the United States underwrote fire insurance and was formed in Charleston, South Carolinain Not only did his company warn against certain fire hazards, it refused to insure certain buildings where the risk of fire was too great, such as all wooden houses.
Formal regulation of the insurance industry began in earnest when the first state commissioner of insurance was appointed in New Hampshire in Inthe State of New York appointed its own commissioner of insurance and created a state insurance department to move towards more comprehensive regulation of insurance at the state level.
Insurance companies were, in large part, prohibited from writing more than one line of insurance until laws began to permit multi-line charters in the s. From an industry dominated by small, local, single-line mutual companies and member societies, the business of insurance has grown increasingly towards multi-line, multi-state and even multi-national insurance conglomerates and holding companies.
Insurance Regulatory Law State-based insurance regulatory system[ edit ] Historically, the insurance industry in the United States was regulated almost exclusively by the individual state governments.
The first state commissioner of insurance was appointed in New Hampshire in and the state-based insurance regulatory system grew as quickly as the insurance industry itself. Stretching back as far as the Paul v. Virginia case inchallenges to the state-based insurance regulatory system have risen from various groups, both within and without the insurance industry.
The state regulatory system has been described as cumbersome, redundant, confusing and costly. South-Eastern Underwriters Association that the business of insurance was subject to federal regulation under the Commerce Clause of the U. Further, the Act states that no federal law should be construed to invalidate, impair or supersede any law enacted by any state government for the purpose of regulating the business of insurance, unless the federal law specifically relates to the business of insurance.
As more and more states enacted versions of these model reforms into law, the pressure for federal reform of insurance regulation waned. Each state decides whether to pass each NAIC model law or regulation, and each state may make changes in the enactment process, but the models are widely, albeit somewhat irregularly, adopted.
The NAIC also acts at the national level to advance laws and policies supported by state insurance regulators. NAIC model acts and regulations provide some degree of uniformity between states, but these models do not have the force of law and have no effect unless they are adopted by a state.
They are, however, used as guides by most states, and some states adopt them with little or no change.
In many states, insurance is regulated through a cabinet-level "department" because of its economic importance. In other states, insurance is regulated through a "division" of a larger department of business regulation or financial services, on the grounds that elevating too many government agencies to departments leads to administrative chaos and the better option is to maintain a clear chain of command.
Federal regulation of insurance[ edit ] Nevertheless, federal regulation has continued to encroach upon the state regulatory system. This OFC concept was to establish an elective federal regulatory scheme that insurers could opt into from the traditional state system, somewhat analogous to the dual-charter regulation of banks.
Although the optional federal chartering proposal was defeated in the s, it became the precursor for a modern debate over optional federal chartering in the last decade. President Jimmy Carter attempted to create an "Office of Insurance Analysis" in the Treasury Department, but the idea was abandoned under industry pressure.
The Dodd-Frank Act has significant implications for the insurance industry. The FIO is authorized to monitor all of the insurance industry and identify any gaps in the state-based regulatory system.
The Dodd-Frank Act also establishes the Financial Stability Oversight Council FSOCwhich is charged with monitoring the financial services markets, including the insurance industry, to identify potential risks to the financial stability of the United States.
Insurers in the U.
Or they may be "surplus", meaning that they are nonadmitted in a particular state but are willing to write coverage there. Although experienced insurance brokers are well aware of what risks an admitted insurer will not accept, they must document a "diligent effort" at actually shopping around a risk to several admitted insurers typically three, who will promptly reject it before applying for coverage with a surplus line insurer.
In turn, brokers presented by clients with those risks can immediately "export" them to the out-of-state surplus market and apply directly to surplus line insurers without having to first document multiple attempts to present the risk to admitted insurers.
By their very nature, export lists illustrate what U. For example, the California export list includes ambulance services, amusement parksfireworks displays, moving a buildingdemolitionhot air balloonsproduct recallssawmillssecurity guardsand tattoo shops, as well as particular types of insurance like Employment Practices Liability and kidnap and ransom.
However, for persons trying to obtain coverage for unusual risks, the choice is usually between a surplus line insurer or no coverage at all. One long-running issue with the surplus lines concept is that it makes less sense when applied to sophisticated insureds with many risks spread across multiple states.
Congress enacted the Nonadmitted and Reinsurance Reform Act of in an attempt to clarify which state gets to regulate the sale of surplus lines insurance to such insureds, and to exempt certain elite categories of insurance purchasers from the normal requirement of a diligent effort to procure coverage from admitted insurers.
Insurance groups[ edit ] Only the smallest insurers exist as a single corporation.
Most major insurance companies actually exist as insurance groups. That is, they consist of holding companies which own several admitted and surplus insurers and sometimes a few excess insurers and reinsurers as well. There are dramatic variations from one insurance group to the next in terms of how its various business functions are divided up among its subsidiaries or outsourced to third party corporations altogether.
All major insurance groups in the U. When the customer writes their check for the premium to "GEICO", the premium is actually deposited with one of those seven insurance companies the one that actually wrote their policy.
Similarly, any claims against the policy are charged to the issuing company. Obviously, it is more difficult to operate an insurance group than a single insurance company, since employees must be painstakingly trained to observe corporate formalities so that courts will not treat the entities in the group as alter egos of each other.
For example, all insurance policies and all claim-related documents must consistently reference the relevant company within the group, and the flows of premiums and claim payments must be carefully recorded against the books of the correct company.Term Limits There is a movement sweeping the United States that state legislatures, by virtue of the Tenth Amendment, have the constitutional power to establish a new qualification for federal office, specifically, a restriction on the number of terms their congressional delegations may serve in Washington.
As the New Deal Court said in United States v. o make all Laws which shall be necessary and proper for carrying into Execution” the other federal powers granted by the Constitution. This residual clause—called at various times the “Elastic Clause,” the “Sweeping Clause,” and (from the twentieth century onward) the “Necessary.
Some otherwise unenumerated federal powers are clearly granted to Congress by the Necessary and Proper Clause, which gives it the power to “make all Laws which shall be necessary and proper for carrying into Execution ” other constitutional powers of the federal government.
THE "PROPER" SCOPE OF FEDERAL POWER: A JURISDICTIONAL INTERPRETATION OF THE SWEEPING CLAUSE into Execution the foregoing Powers, and all other Powers vested by this Consti-tution in the Government of the United States, or in any Depart-ment or Officer thereof.' struct new roads.
The constitutional . Insurance in the United States refers to the market for risk in the United States, including new legislation for a dual state and federal system of insurance solvency regulation.
This OFC concept was to establish an elective federal regulatory scheme that insurers could opt into from the traditional state system, somewhat analogous to.
the power of the courts to declare federal or state laws and other acts of government unconstitutional. In Thomas Paine's Common Sense, he argued that an independent colonial government of their own is a .