Mississippi Property & Casualty Practice Exam

What is the main responsibility of a state insurance commissioner?

1. Make the law; enforces it

2. Issue new insurance licenses

3. Set rates for all insurance types

4. Provide insurance for government employees

The correct answer is: Make the law; enforces it

The main responsibility of a state insurance commissioner is to oversee the insurance industry within their jurisdiction, which includes both making and enforcing regulations. This role is critical in ensuring that insurance markets operate fairly and efficiently and that consumers are protected from unethical practices. While insurance commissioners do not create laws in the same way that legislators do, they often have the authority to create rules and regulations that implement state insurance laws and ensure compliance with them. The responsibility of issuing new insurance licenses belongs to the commissioner, but that is only part of their role focused on the regulation of the insurance industry. Setting rates for all insurance types is not typically a direct responsibility of the commissioner; rather, they often provide oversight to ensure that rates are fair, adequate, and not discriminatory. Providing insurance for government employees is generally handled through specific government programs and does not fall under the commissioner’s main duties. Thus, the main focus on regulating and enforcing insurance laws makes the first choice the most accurate representation of the commissioner's primary responsibility.