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Law Pro
Law Pro, Attorney
Category: Business Law
Satisfied Customers: 24869
Experience:  20 years experience in business law - sole proprietor, partnership, and corporations
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I am writing to ask about starting an insurance/assurance company

Resolved Question:

I am writing to ask about starting an insurance/assurance company that specializes in unique coverage. Below are 2 companies that offer unique insurance:

Weather insurance – customer pays a yearly fee, and the company covers for any rain or snow incidents where a business will lose money do to the weather.

Ticket insurance – customer pays a yearly fee, and the company pays any traffic or parking tickets that the customer might get within that year.

I thought that the insurance industry was regulated by the state.

How can the above companies offer theses types of coverages over the internet?
Are these not considered insurance?
Are only certain types of insurance regulated by the State?
How would I know if my company will have to be regulated?
Submitted: 7 years ago.
Category: Business Law
Expert:  Law Pro replied 7 years ago.

Yes, each state regulates their own insurance industry.


How various insurance companies are able to sell insurance in various states is that they must have a licensed agent in each state they want to sell insurance in.


Usually it's just a matter of filling out the regristration and paying the licensing fee for each and every state.


Many agents are licensed in multiple states at the same time - which is very expensive.


If your selling insurance within a state - you would have to contact that state to see what the requirements would be for selling that type of insurance or risk policy.

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