Traditional Self-Insurance

Today insurance in the U.S. is regulated by individual state insurance departments. Each state requires insurance companies to be licensed to transact business in the state and to file policies and rates stipulating on what basis coverage is provided. Whilst most classes of business can be self-insured, for certain classes such as automobile liability, general liability and workers compensation most states impose regulations to stipulate who may self-insure and on what basis. These laws are generally designed to protect an injured party so that they can be assured of having their claims met.