What is the main role of state insurance departments?

The main role of state insurance departments is to oversee regulation of the insurance industry. This involves ensuring that insurers are financially stable, maintaining fair and equitable practices within the insurance market, and protecting consumers. State insurance departments are responsible for licensing insurance companies and agents, monitoring their practices, and enforcing state insurance laws and regulations to ensure compliance. They also play a critical role in rate approval, consumer education, and handling complaints against insurance companies, all aimed at fostering a fair insurance environment.

The tasks of processing consumer claims, offering financial assistance to insurers, and enforcing federal insurance laws are generally not the primary responsibilities of state insurance departments. While they may assist consumers in navigating issues related to their claims or inform them about federal insurance regulations, the regulatory framework and consumer protection are fundamentally rooted in state-level oversight.