Assignment Title: Regulatory Issues
Purpose: To explore, analyze, and report on an actual case where a regulatory (or alleged) failing affected the operations of an insurance company or major insurance brokerage.
Description: After reading chapter two of the assigned textbook you will gain familiarity with several dimensions of regulation that applies to the insurance industry. With this knowledge, conduct research to identify a significant event that involved a regulatory failing or alleged regulatory failing on the part of an insurance company or major insurance brokerage. (Helpful hint: Search library databases or publisher websites for back articles from insurance industry publications such as Business Insurance, Insurance Journal, Best's Review, or Risk & Insurance. Industry publications such as these always cover significant regulatory clashes within the industry.)
Your paper should include the following elements:
- Summary of the regulatory issue(s) at the heart of the matter - in other words, tell us what happened.
- Identify the specific regulatory concept(s) from chapter two of the text that this matter aligns with. (Be sure to properly cite the textbook).
- Describe the final outcome, or if it is still unresolved, describe the most likely outcome. Explain if and how this event specifically affected or changed the company's operations.
- Offer your own analysis of the situation: What could the insurer have done to avoid the regulatory conflict? Alternatively, was the insurer justified in acting as it did in spite of the ensuing regulatory situation? Explain the rationale behind your analysis.
As an example, a student could research and write about the regulatory conflict that occurred when New York Attorney General Elliott Spitzer sued Marsh & McLennan in 2004 over the issue of contingent commissions.