Insurance Companies Three types of insurance companies are stock, mutual, and mixed companies. Stock companies are organized by subscribers who make an initial capital investment in the corporation, which is then managed by a board of directors. Mutual companies are a cooperative enterprise whose members maintain a dual relationship with the company. Mixed companies have characteristics of both mutual and stock companies. Regulation of the Insurance Industry McCarran-Ferguson Act gave regulatory powers to the states.
States can regulate every aspect of the insurance industry.
They provide regulation for both foreign and domestic companies. Congress may step in if states are doing an inadequate job of regulating them. Insurance Companies are partially exempt from federal antitrust laws. Regulation of the insurance industry is given to an administrative agency useally referred to as an insurance commission. An agent is a person who contracts people to insurance policies on behalf of the company.