Insurance regulation in a nutshell

ARTICLE I

History of Insurance Regulation

Section I.1.Early Insurance Companies and State Regulation

Fire insurance companies were first organized in the U.S. in the mid-1700’s. The oldest of these was a fire insurance company whose organization was facilitated by Benjamin Franklin called The Philadelphia Contributionship for the Insuring of Houses from Loss by Fire. This mutual company has been in continuous operation since March 25, 1752 and was incorporated under the laws of Pennsylvania on February 20, 1768. The company remains in existence today and does business under its original name.
The oldest stock property/casualty insurers in the U.S. are the Insurance Company of North America (incorporated in Pennsylvania on April 14, 1794 under the name The President and Directors of the Insurance Company of North America) and The Insurance Company of the State of Pennsylvania (incorporated in Pennsylvania on April 18, 1794). Both insurers continue to operate – Insurance Company of North America is a member company of the ACE group and The Insurance Company of the State of Pennsylvania is a member of the AIG group.
Among the oldest life insurance companies in New York (and the United States) are MONY Life Insurance Company (organized as Mutual Life Insurance Company of New York and licensed in New York on April 12, 1842), New York Life Insurance Company (organized as Nautilus Insurance Company and licensed in New York on April 17, 1845), AXA Equitable Life Insurance Company (organized as Equitable Life Assurance Society of the United States and licensed in New York on July 25, 1859) and Metropolitan Life Insurance Company (organized as National Travelers Insurance Company and licensed in New York on May 14, 1866).
For these early years, the insurance business was regulated by the states.

Section I.2.Paul v. Virginia (1869)

In 1869, the United States Supreme Court, in Paul v. Virginia,¹ held that the business of insurance did not constitute interstate commerce and, therefore, constituted local transactions to be governed by state law.