What Does a State Insurance Commissioner Do?

A state insurance commissioner is a government official who helps regulate the business of insurance within the boundaries of a particular state in the US. All fifty states have an office of insurance commissioner. In 11 states, the insurance commissioner is elected by voters. In the other 39 states, the position is appointed—typically by the governor, except in Virginia and New Mexico, where it is appointed by an independent commission. An insurance commissioner heads a state's department of insurance, which is staffed by insurance regulators, adjusters, and customer service agents who have an understanding of insurance products and insurance law.

In some states, the office of the insurance commissioner is intertwined with related state agencies. In Georgia, for example, the agency is called the Office of Insurance and Safety Fire Commissioner. In New York, it is the Department of Financial Services. In New Jersey, it is the Department of Banking and Insurance. In Virginia, the office is part of the Virginia State Corporation Commission, which includes divisions for financial regulation, insurance agent regulation and administration, life and healthcare market regulation, and property and casualty market regulation.

The specific duties of a state insurance commissioner and a state insurance department vary depending upon the laws and statutes of a state. However, they are generally tasked with:

1. 1. Consumer protection: State insurance commissioners represent the interests of policyholders in all segments of the insurance market, including life insurance, homeowners insurance, property and casualty insurance, health insurance, and automobile insurance.
2. 2. Insurance regulation: Regulated insurance companies must maintain financial solvency, use licensed insurance agents, pay claims in a timely manner, and accurately portray the insurance policies they sell. Licensees have to register with the insurance commissioner's office and keep up-to-date information on file.
3. 3. Preventing insurance fraud: A state insurance commissioner helps protect insurers from fraudulent claims, launching state investigations when necessary.
4. 4. Incorporating government aid programs: In the state of Arkansas, for example, the state insurance department includes a division to aid compliance with the Affordable Care Act.
5. 5. Consumer services: Most states maintain a hotline for consumer complaints that lets individuals report insurance fraud and other improprieties.

The National Association of Insurance Commissioners (NAIC) allows state insurance commissioners to interface, share ideas, sponsor programs, and lobby for shared interests.

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