Are there legal limitations on insurance company business practices?
UPDATED: June 19, 2018
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident law decisions. Finding trusted and reliable legal advice should be easy. This doesn't influence our content. Our opinions are our own.
State insurance laws impose many requirements and limitations on the way insurance companies conduct their marketing, underwriting (determining which policyholders or risks to accept or reject for coverage) and rate making activities. In some instances, these laws also limit an insurance company's ability to cancel or discontinue coverage once a policy has been issued. In general, there are many restrictions and limitations applicable to personal or "consumer" insurance, such as personal auto, homeowners and individual or small group health insurance. There usually are fewer restrictions applicable to business and commercial insurance. The specific requirements and limitations often vary a great deal from state to state.