Gov. Brown Signs Bill that Could Energize Insurance Markets

[...]California's system may soon come before the U.S. Supreme Court, as insurers and insurance trade association make the case that the Fifth and 14th Amendments preclude a regulator from setting rates so low a regulated insurer couldn't earn a fair rate of return.The free-enterprise syst...

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Bibliographic Details
Published in:Insurance Journal 2017-10
Main Author: Greenhut, Steven
Format: Article
Language:English
Subjects:
Bills
Excess & surplus lines
Guaranty funds
Innovations
Insurance commissioners
Insurance coverage
Insurance industry
Online Access:Get full text
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Summary:[...]California's system may soon come before the U.S. Supreme Court, as insurers and insurance trade association make the case that the Fifth and 14th Amendments preclude a regulator from setting rates so low a regulated insurer couldn't earn a fair rate of return.The free-enterprise system works far better at providing products and services that customers demand than a command-and-control system by which an elected official acts as a czar who determines the "right" products and prices that companies can offer.Even though the surplus-lines market represents a niche in the vast insurance market, it shows that a deregulated market works best at supporting innovation.
ISSN:0020-4714