PEER found that MID, through its regulatory efforts, provides the public with reasonable protection against insurance company insolvencies. MID also does not strictly enforce licensing requirements, use all available means to detect misconduct, or educate the public to recognize and report misconduct. Further, the state seeks to ensure payment of consumers' claims against insolvent insurers via guaranty associations.
State law establishes maximum amounts which the guaranty associations can pay per policy.
Actuarial review is necessary to determine whether property and casualty rates are excessive, inadequate, or unfairly discriminatory. MID has no legal authority to regulate life, health and accident insurance rates except in the areas of Medicare supplements, long-term care policies, HMOs, credit life, and credit accident and health. However, this policy is not derived from any specific grant of legislative authority and MID personnel expressed concern over the department's legal authority if this policy were challenged in court. The purpose of licensing insurance agents, a responsibility of MID, is to provide basic assurance that agents are competent and trustworthy. State statutes require licensing exams, background checks, and pre-licensure and continuing education training as components of the licensing process.