Are there laws passed by the legislature affecting my insurance policies?
Insurance companies have a very nice gift. It was given to them at the end of the second world war. It’s called the McCarran-Ferguson Act. What that does is effectively take an insurance company out of all regulation at the federal level. They can’t be regulated for anti-trust laws at all, so in terms of regulations the regulations that you’re going to run into that deal with an insurance company are issued by the state, so it depends on the state where you are, for example, Florida, as to what the regulations are going to be. They can put regulations or caps on the amount of premiums. They can make certain policies illegal in those states to sell. They can also make certain that in a given situation what rights you have against the insurance company.
For example, if you have an insurance policy in Georgia, you can end up with a situation whereby you have to have the claim paid within 60 days. If it’s not paid within 60 days or a determination made as to why it wouldn’t be paid, the insurance company has to get back with you. Maryland and Florida have similar laws, and they do vary from state to state. The biggest thing you want to do with an insurance policy is understand it, have an attorney work with you if you have any issues with it, and understand one last thing. The federal government will not protect you in connection with any insurance company losses.