Who Regulates Life Insurance? 
Life insurance is regulated by state insurance departments . These agencies license or certify companies to sell life insurance in their state . And they do so according to their own standards . This means that not every company can sell their products in every state . It also means that not every product from every company would be approved by that state insurance department . Not only that : it means that certain sales procedures , such as the replacement of existing policies , follow different protocols . Your broker must work with his general agent and guide you through these state regulations . There is no federal agency regulating the life insurance industry , and I think that is a good thing . It simply is not needed . Excessive government regulation would only be cumbersome and costly . One reason why federal intervention is not needed is because the industry does a very good job of regulating itself . The National Association of Insurance Commissioners acts to promote industry - wide standards and best practices . The chief insurance regulators from all 50 states , the District of Columbia , and US territories all work together . They coordinate oversight of broker market conduct , consumer protection , and institutional viability . So you have kind of a state-based national system of insurance regulation . Want to learn more ? Review my blog at planrisklive.com . 