Blue Sky Insurance Company sells life annuities to sick elderly people,routinely denies legitimate claims,and cancels insureds after they submit a claim.What type of insurance regulation would sanction Blue Sky for such wrongful behavior?

Question

Quizplus · Accepted Answer

Market conduct regulation focuses on the conduct of insurance companies in their interactions with policyholders, such as handling claims and underwriting practices. Blue Sky's wrongful behavior of denying legitimate claims and canceling insureds after they submit a claim would fall under the scope of market conduct regulation. Solvency regulation is concerned with the financial stability of insurance companies, risk classification regulation deals with the classification of risks for insurance purposes, and rate regulation relates to the pricing of insurance premiums.

Blue Sky Insurance Company Sells Life Annuities to Sick Elderly