Reference no: EM13184181

The memo must explain to him why the government regulates insurance companies, and how this is done.
This should be presented in a businesslike memorandum, one that can be read "on its own" without forcing the reader to refer to some separate document (such as, for example, this assignment description.)
You should provide to Captain Teach the benefit of all you have learned in your inquiries, but at minimum, your memo should address:
1. What harms, abuses, or bad effects insurance regulations are principally designed to avoid?
2. What classification of people are sought to be protected by insurance regulations, mainly?
3. Whether insurance regulation is accomplished at the state or federal level?
4. What are the main techniques that regulations commonly require, so as to provide the above protections?
5. Who enforces the regulations, and how do they do it?
In order to write this memo, you will need to understand and express the role of the following, at minimum:
A. State commissioners of insurance
B. Insolvency of insurers
C. Insurance guaranty funds
D. The concept of an "admitted carrier"
E. Reserves
Your memo should confine itself to the role of governments in regulating insurance companies. In that regard, you do not need to include activities of governments in regulating insurance brokers or agents, or government actions that protect stockholders (such as the securities laws), or laws that allow private persons to sue insurance companies.
Your memo should be written carefully and professionally enough that you could show it to the president of the company, or that you would be content to have your job dependent on it.