How does the government ensure consumer protection in the insurance industry?

The government works to ensure consumer protection in the insurance industry in a few different ways. Firstly, there are laws in place to regulate the insurance industry and ensure consumers are being treated fairly. In Washington, the Office of the Insurance Commissioner (OIC) oversees the insurance industry and serves to protect consumers from unfair practices by insurance companies. The OIC requires insurance companies to be licensed and in order to be licensed, companies must abide by the rules and regulations set in place to protect consumers from fraud, unfair discrimination and deceptive trade practices. Companies must also abide by the Unfair Claim Settlement Practices Act which sets forth how claims must be handled, how quickly companies must respond, and how consumers may dispute a claim. The OIC also provides resources to consumers to help them make informed decisions when shopping for insurance. Consumers can access the OIC website to research different companies, compare various policies and obtain answers to questions they may have. The OIC also provides an online complaint system which consumers can use to report any unfair or unlawful practices they may have experienced. By working to ensure compliance with the laws and regulations governing the insurance industry, the government is able to ensure consumer protection. The OIC works to ensure insurance companies are held accountable and consumers can feel confident and secure when shopping for insurance.

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How does the government ensure consumer protection in the insurance industry?

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