Definition of "Statutory restriction"
Chad Howery, Real Estate Agent
Donna and Team New Bern with Keller Williams Realty
Limitation imposed on insurance companies by state law. States oversee the insurance industry, being responsible for making certain that the rates are fair, reasonable, and adequate, and that among other things, the companies that write insurance in the state are financially sound and able to pay future claims. To this end, the states restrict the types of investments insurance companies can make with their premium dollars, and they control insurers' relationships with insureds by guaranteeing certain minimum rights to insureds.
Have a question or comment?
We're here to help.