[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-412619-105":3,"detail-sidebar-cat-0-en-105":81,"doc-detail-412619-en":130},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","insurance-educational-handout-final-insurance-industry-overview","Insurance Educational Handout Final - Insurance Industry Overview","","Insurance educational handout covering the insurance industry from a “big picture” perspective, with emphasis on how insurance works and how regulation is structured. It explains underwriting and how risk evaluation determines what consumers pay, including Texas-specific requirements. The guide outlines state regulation fundamentals, key regulators and associations, federalization and major federal laws, guaranty association types, and agent licensing categories. 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This information is used to determine how much a consumer should pay to insure against the risk.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"How is insurance regulation structured in the United States, and what is emphasized in Texas?",{"text":68,"@type":64},"Insurance is highly regulated, primarily through state regulation under the McCarran Ferguson Act. 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ADMITTED LINES RESIDUAL MARKETS (TWIA/FAIR/TAIPA) WORKERS’ COMPENSATION  \nTYPES OF LIFE AND HEALTH BUSINESS ANNUITIES ACRONYMS  \nGLOSSARY OF INSURANCE TERMS-GENERAL GLOSSARY OF INSURANCE TERMS-LIFE & HEALTH GLOSSARY OF INSURANCE TERMS-PROPERTY & CASUALTY  \n1  \n2  \n3  \n4  \n5  \n6  \n7  \n8  \n9  \n10  \n11  \n12  \n13  \n14  \n15  \n16  \n17  \n18  \n20  \n22  \nINSURANCE INDUSTRY: BIG PICTURE  \nMajor Financial Institutions  \n• Invest billions of dollars in economy  \nLarge Employers  \n• Agents and companies  \nSocial Good  \n• Rebuild after a disaster  \n• Pay for health care  \n• Assure lenders’ debts will be paid  \n• Take care of beneficiaries  \nINSURANCE WORKING FOR TEXAS  \nInsurance companies are dependable economic and financial partners for Texas and Texans playing a vital role in keeping the Lone Star State vibrant and strong.  \n261,247 JOBS  \n(direct & indirect) created by insurance companies in Texas in 2021.  \n$38 BILLION  \npaid to Texans for property and casualty losses in 2021.  \n$42 BILLION  \npaid to Texans for life insurance and financial products in 2021.  \n$2.7 BILLION  \nin tax revenue for Texas produced by insurance taxes in 2020 fiscal year.  \n$583 BILLION  \ninvested by life insurers to support the Texas economy in 2021.  \nHOW INSURANCE WORKS  \nOnly product sold before the true cost of the product is known  \n• Underwriting is the process of evaluating the risk to be insured  \n» How likely it is that the loss will occur » How much the loss could be  \n• This information is used to determine how much a consumer should pay to insure against the risk  \n• In Texas, underwriting cannot be discriminatory and must be based on actuarially justifiable standards  \n• Insurers use health records, driving records, insurable interest  \nREGULATION BASICS  \n• Highly Regulated Industry  \n• Primarily State Regulation (McCarran Ferguson Act)  \n• National Association of Insurance Commissioners (NAIC)» Meets in person 3 times a year; conference calls  \n» Develops model acts » No separate enforcement ability » Accreditation  \n• National Council of Insurance Legislators (NCOIL)» Meets in person 3 times a year; conference calls » Develops model acts  \n• State Regulation  \n» Texas Department of Insurance (TDI)  \n» Commissioner of Insurance – appointed by Governor for a twoyear term  \n» Division of Workers’ Compensation Commissioner-appointed by Governor for a two-year term  \nBASICS OF STATE REGULATION  \n• Solvency and Capitalization Requirements  \n• Formation (Companies) and Licensing (Companies, Agents & other Licensees)  \n• Affiliated (Holding Company) Transactions  \n• Policies, Endorsements, and Other Forms—mostly prior approval  \n• Rates  \n» Most property casualty are file and use  \n» Life insurance rates must be actuarially justifiable » Long-term care rates are regulated  \n» Credit life & health are regulated  \n» Health insurance—major medical subject to some federal regulation and some state review  \n• Guaranty Associations  \nFEDERALIZATION  \nGramm Leach Bliley Act (GLB)  \n(a/k/a Financial Services Modernization Act) November 1999  \nAffordable Care Act  \nDodd-Frank Act  \nFederal Insurance Office (FIO)  \nGUARANTY ASSOCIATION  \n• Life & Health Insurance  \n• Property & Casualty Insurance  \n• Title Insurance  \nTYPES OF AGENTS  \nTWO TYPES OF AGENTS  \nCaptive Agents  \nRepresent a single insurance company and are required to only do business with that one company.  \nIndependent Agents  \nRepresent multiple companies and work on behalf of the client (not the insurance company) to find the most appropriate policy.","cbCaipqxOl6Gkr6G","https://ap.wps.com/l/cbCaipqxOl6Gkr6G","pdf",795288,28,"English","# Insurance Industry: Big Picture\n## Insurance Working for Texas\n## How Insurance Works\n## Regulation Basics\n## Basics of State Regulation\n## Federalization\n## Guaranty Association\n## Types of Agents","[{\"question\":\"What is underwriting and how does it affect insurance pricing?\",\"answer\":\"Underwriting evaluates the risk to be insured, including how likely a loss is and how much the loss could be. This information is used to determine how much a consumer should pay to insure against the risk.\"},{\"question\":\"How is insurance regulation structured in the United States, and what is emphasized in Texas?\",\"answer\":\"Insurance is highly regulated, primarily through state regulation under the McCarran Ferguson Act. Texas regulation involves the Texas Department of Insurance (TDI) and the Commissioner of Insurance, and the handout notes that underwriting in Texas cannot be discriminatory and must be actuarially justifiable.\"},{\"question\":\"What laws are highlighted under federalization?\",\"answer\":\"The handout lists the Gramm-Leach-Bliley Act (GLB), the Affordable Care Act, the Dodd-Frank Act, and the Federal Insurance Office (FIO) as key federal references.\"}]","Insurance Educational Handout Final - Insurance Industry Overview | PDF",1790592207,71]