Which level of government primarily regulates insurance?

The regulation of insurance primarily falls under the jurisdiction of state governments. Each state in the U.S. has its own insurance laws and regulatory agencies that oversee insurance practices within that state. This decentralized approach to regulation means that the specifics of insurance law can vary significantly from one state to another. State regulators are responsible for ensuring the financial solvency of insurance companies, protecting consumers, and overseeing the licensing of insurance agents and brokers.

While the federal government does play a role in regulating certain aspects of insurance, particularly with laws that address specific issues like health insurance and consumer protection, it does not take the lead in overall insurance regulation. Local governments typically do not engage in insurance regulation either. The international level also does not regulate insurance, as insurance is tied to domestic laws and practices. Therefore, the state's role as the primary regulator of insurance holds true across the nation.