Who regulates insurance companies?

As of February 2015, state governments regulate insurance companies. Rather than focusing on insurance company stability in terms of the global market, regulation instead deals with policy holders and local markets. The states have a network of guaranty associations that protect policy holders when an insurance company becomes insolvent.

As of February 2015, only two insurance companies, Prudential and AIG, have been moved to federal regulation under the auspices of the Financial Stability Oversight Council. However, there is a push for more federal regulation. The 2010 Dodd-Frank Act established a Federal Insurance Office tasked with developing a plan to modernize insurance regulation.