Insurance company operations are overseen by state insurance regulators, whose authority is broad and deep. Companies must meet risk-based capital standards, abide by investment guidelines, and submit to regular on-site financial examinations.
Companies must advise regulators of changes in officers and directors, and file comprehensive quarterly and annual statements which are signed and attested to by company officers. Company finances are reviewed from actuarial and accounting standpoints.
Each state has its own set of company and agent licensing requirements, product filing rules, market conduct exams, and laws and regulations to ensure solvency and protect consumers. To do multistate business, an insurer must apply for and receive licenses from each state before setting up shop in those states.