Insurance is an important concept and practice in modern society, providing a safety net for many individuals and businesses. However, with so many different types of insurance available, it can be difficult to determine which type is the right fit and which is regulated by the government.
And to further understand more details and provisions about your specific insurance plan, New Hampshire Deputy Insurance Commissioner DJ Bettencourt will provide an overview of the types of insurance regulated by the government.
Life Insurance
Life insurance is one of the most common types of insurance regulated by the government. Life insurance provides financial protection in the event of the policyholder’s death and is typically used to provide income for the policyholder’s family.
Life insurance policies are typically regulated at the state level, setting a minimum coverage amount and a minimum length of time that the policy must remain in effect. The specific regulations for life insurance policies include provisions regarding the minimum length of time that the policy must remain in effect and the type of death that is covered by the policy.
Health Insurance
Health insurance is another type of insurance that is regulated by the government. Health insurance provides financial protection in the event of a medical emergency, such as a hospital stay, surgery, or an unexpected illness.
Health insurance policies are typically regulated at the federal level, with the Affordable Care Act establishing minimum standards for policies that must be met. The specific regulations governing health insurance policies include provisions regarding the type of medical services that are covered, and the maximum out-of-pocket costs that the policyholder is responsible for.
Property and Casualty Insurance
Property and casualty insurance provide financial protection in the event of damage to a person’s property, such as their home or car, or the event of a liability claim, such as a lawsuit.
The specific regulations for property and casualty insurance policies include provisions regarding the type of damage or liability that is covered by the policy and the maximum out-of-pocket costs that the policyholder is responsible for.
Auto Insurance
Auto insurance provides financial protection in the event of an accident involving a vehicle, such as a car or a motorcycle. Auto insurance policies are also regulated at the state level, with typically sets a minimum coverage amount and a maximum deductible.
For that, DJ Bettencourt states that the specific regulations for auto insurance policies provisions regarding the type of vehicle that is covered by the policy and the type of accidents that are covered by the policy.
Disability Insurance
Lastly, disability insurance provides financial protection if the policyholder becomes disabled and is unable to work. Disability insurance policies are regulated at the state level, with states typically setting the coverage amount and deductible.
The specific regulations for disability insurance policies include provisions regarding the type of disability that is covered by the policy and the type of income that is covered by the policy. Additionally, some states may require that the policyholder take a medical examination or provide proof of insurability to obtain a policy.