In Insurance 101 – Property – Casualty Basics, the American Insurance Association writes on Checks and Balances – An Insurance Regulation Overview:
Property-casualty insurance is heavily regulated at the state level; this is particularly true for personal lines and for workers’ compensation. Generally speaking, state regulators have oversight of market conduct; insurance company and agent licensing; insurance rates; policy language; financial condition (solvency) of insurance companies; and, consumer protection in insurance transactions.
Ideally, regulators focus their resources on making sure that insurance rates are adequate to cover losses, so that claims can be paid in full. They also are responsible for making sure that rates are neither unreasonably high nor unfairly discriminatory. Another key regulatory duty is to make sure that insurers remain solvent, i.e., that they maintain enough capital to pay policyholder losses as they come due.
Insurance regulations expert witnesses may opine on state insurance laws and regulations, as well as other insurance issues.