How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Jane T (LLC) Your Own Question

Jane T (LLC)
Jane T (LLC), Attorney
Category: Business Law
Satisfied Customers: 8435
Experience:  Worked in corporation's law department; business formations, formalities, and other business matters
Type Your Business Law Question Here...
Jane T (LLC) is online now
A new question is answered every 9 seconds

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 throughout the United States (not just Maryland). 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: 5 years ago.
Category: Business Law
Expert:  Jane T (LLC) replied 5 years ago.

Dear Shane F.

 

Insurance companies and the insurance industry is regulated by each state. Normally, being regulated to sell or offer insurance in a state means that the company needs to be licensed by a state's insurance department or bureau. To offer insurance through the internet (just like offering loans or consumer lending products over the Internet) requires those companies on the Internet to first obtain state licensing in any state they plan to conduct business in (and licensing in each state requires completion of certain state forms, often a certain required minimum asset number, and often a physical state location or contact office at least). The methods to become regulated and how to assure one is legally operating as an insurer in a state are established by a state's legislature and presented in a state's statutes (or laws) and also in "regulations" which are drafted by the actual state agency which supervises/regulates the business.

 

In MD the state agency that regulates insurance companies and business is the MD Insurance Administration. To learn what is required for a specific type of insurance business and how to file for a license, you can contact them here. The laws which apply to the insurance business and industry in the state can be found here

 

Customer: replied 5 years ago.
I spoke to the company that offers the ticket coverage. For their service, You pay a yearly fee, and they pay for any traffic or parking tickets. They mentioned that they are not regulated by the state agency. They said they are not considered insurance because the customers pay the same amount, and only get their tickets paid. They do not get a financial payout. Is this correct?
Expert:  Jane T (LLC) replied 5 years ago.

Dear Shane F.

 

That does not sound correct to me, because by paying to have them pay for a ticket (just like people pay insurance so a doctor, bank, or an accident victim may be paid) one seems to be buying coverage "in case" something happens, like surgery, a fire, or an accident but, if nothing happens, one does not get that money back. So, that would seem to be a system just like insurance. Legal rights and duties are often determined through interpretations of law, however, and, as the regulatory agency in charge of insurance, the MD Insurance Administration, which provides a consumer services to help consumers answer questions regarding insurance can be contacted here to answer direct questions regarding who should or should not be regulated by them.

Jane T (LLC), Attorney
Category: Business Law
Satisfied Customers: 8435
Experience: Worked in corporation's law department; business formations, formalities, and other business matters
Jane T (LLC) and 5 other Business Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1162
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1142
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    393
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    301
    13 years practicing attorney, MBA
 
 
 

Related Business Law Questions