An historical and economic analysis of insurance regulation in the United States and Virginia

Abstract

Insurance has been regulated in the United States since colonial times, albeit in many faces. This thesis summarizes the history of insurance regulation in the United States and Virginia. Special attention is given to the relationship among the insurance industry, the insurance regulator, and some aspects of the role of economic and political self interests in the development of insurance regulation. This paper also summarizes the various arguments involved in the state vs. federal controversy over regulatory control. The various methods and purposes of current rate regulation are also briefly discussed. Finally, some descriptive characteristics of insurance regulation in Virginia are presented and an empirical analysis of budget behavior of the Virginia Bureau of Insurance is offered.