Who Regulates Life Insurance? 
States regulate life insurance companies through insurance commissioners , who generally follow standards set by the NAIC -LRB- National Association of Insurance Commissioners -RRB- . There are a lot of regulations that insurance companies must follow . E.g. they must get approval to even offer certain products in any particular state . This makes insurance companies very reliable and able to pay out when death occurs many years after the policy is taken out . 