State Insurance Department
Definition - What does State Insurance Department mean?
A state insurance department is a state government organization that enforces insurance laws. Every state has one. These departments exist to protect insurance policyholders from fraud or other unlawful actions. As regulators of the insurance industry, they make sure the insurance companies operating within the state are legitimate and law-abiding.
Insuranceopedia explains State Insurance Department
It is the responsibility of state insurance departments to license, examine and regulate professionals in the insurance industry. In other words, they are the foremost authority when it comes to ensuring that people who operate in the insurance industry are qualified and have the required credentials and skills. State insurance departments are also responsible for making and upholding state insurance laws. One of their key goals is to discover and prosecute any cases of insurance fraud, whether on the part of the insurer or the insured. In general, their mission is to create a safe and fair insurance market for the good of the public.