Regulator

What Does Regulator Mean?

A regulator is a person or group responsible for overseeing the activities of a specific industry. In the insurance sector, a regulator ensures that the laws, directives, rules, and regulations governing the industry are adhered to. Typically, regulators are state insurance departments that are directed and authorized by statutory law.

Insuranceopedia Explains Regulator

Insurance regulators oversee the insurance industry within a specific state. They monitor business practices, investigate cases, impose penalties, and issue (or revoke) licenses. The primary purpose of an insurance regulator is to protect both insurers and the insured. Industry laws are particularly focused on maintaining the solvency of insurance companies, as a financial failure could prevent a company from fulfilling its obligations to policyholders.

While regulators are governed by statutory laws enacted by state legislatures, administrative adjudication, court decisions, and federal law also play a significant role in shaping their activities.