What Government Agencies Oversee The Life Insurance Industry?

By Patrick Cooper Posted in Life Insurance News

Life insurance agencies are stockholder held corporations. When one buys a life insurance policy, one is actually buying a kind of annuity that has several provisions but is basically buying shares of the Life Insurance product. The monies that life insurance companies collect are invested. If their management makes unwise investment decisions, events like the current move of life insurance companies to buy federally controlled and backed banks in order to qualify for federal bailout funds can occur. Of course, that is not to say that a life insurance policy can be declared worthless if the life insurance company has shown losses. Basically, a life insurance policy is a way of safely investing in the stock market with a guaranteed sum at a designated period based on your life expectancy.


The Security and Exchange Commission is basically the federal agency that oversees the life insurance industry. A life insurance policy is a security that an individual buys and can be cashed out or payable only at death depending on the type of product one buys from his life insurance company. The SEC can charge a life insurance company with violating the rules of the Security and Exchange Commission if any of their products are misleading, violate the public trust or misappropriate funds that they have solicited from their customers. The SEC will charge life insurance companies who risk their product owners guaranteed proceeds.

State Controlled

Life insurance companies are under the control of state governments and not of federal governments. The products that life insurance companies offer vary from state to state depending on the special government restrictions that each state mandates towards life insurance companies.

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  4. What Is The Best Life Insurance?
  5. Is “Investor Protection Act” For Life Insurance In Trouble With Congress?

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