Modernizing Insurance Regulation -- Contents -- Preface -- Acknowledgments -- CHAPTER 1 Modernizing Insurance Regulation: An Overview -- INTRODUCTION -- STATE VERSUS FEDERAL REGULATION -- SYSTEMIC RISK -- GUARANTY ASSOCIATIONS -- CONSUMER PROTECTION -- COMPARISON WITH THE FIO REPORT -- CONCLUSION -- NOTES -- CHAPTER 2 Life Insurance's Importance to American Families and Industry's Concern about Regulation -- CHAPTER 3 Why Insurance Needs a Federal Regulator Option -- THE CONVERGENCE BETWEEN INSURANCE AND FINANCIAL SERVICES -- CHALLENGES OF STATE-BASED REGULATION -- REASONS FOR A FEDERAL REGULATOR OPTION -- CONCLUSION -- CHAPTER 4 Observations on Insurance Regulation-Uniformity, Efficiency, and Financial Stability -- A BRIEF HISTORY OF U.S. INSURANCE REGULATION -- THE IMPORTANCE OF CHECKS AND BALANCES -- THE OTHER SIDE OF THE PROBLEM -- A CLOSING COMMENT -- NOTES -- REFERENCES -- CHAPTER 5 Lessons Learned from AIG for Modernizing Insurance Regulation -- CHAPTER 6 Assessing the Vulnerability of the U.S. Life Insurance Industry -- LIFE INSURANCE BUSINESS MODEL -- CHARACTERIZING THE LIQUIDITY OF INSURER LIABILITIES -- WITHDRAWAL SCENARIOS -- ASSET HOLDINGS AND ASSET RISK -- ASSET AND LIABILITY RISK -- CONCLUSION -- APPENDIX 6A: DETAILS ON ESTIMATING ASSET RISK -- NOTES -- REFERENCES -- CHAPTER 7 Systemic Risk and Regulation of the U.S. Insurance Industry -- INTRODUCTION -- LITERATURE REVIEW -- Industry-Sponsored Research -- Academic Studies -- PRIMARY INDICATORS AND CONTRIBUTING FACTORS FOR SYSTEMIC RISK -- Primary Indicators for Systemic Risk -- Contributing Factors to Systemic Risk -- PRIMARY INDICATORS AND CONTRIBUTING FACTORS FOR U.S. INSURERS: CORE ACTIVITIES -- Size and Core Activities -- Interconnectedness and Core Activities -- Lack of Substitutability and Core Activities -- Contributing Factors and Core Activities.

SYSTEMIC RISK AND NONCORE ACTIVITIES -- STATISTICAL ANALYSIS OF INSURER CHARACTERISTICS AND A MEASURE OF SYSTEMIC RISK -- Data -- Correlation Analysis -- Regression Analysis -- SYSTEMIC RISK AND U.S. INSURANCE REGULATION -- State Insurance Regulation -- Federal Regulation -- Issues to Consider for Future Regulation -- CONCLUSION -- NOTES -- REFERENCES -- CHAPTER 8 Designation and Supervision of Insurance SIFIs -- INSURANCE AND SYSTEMIC RISK -- FSOC DESIGNATION OF NONBANK SIFIS -- POTENTIAL CONSEQUENCES OF SIFI DESIGNATION -- PROMOTING MARKET DISCIPLINE AND AVOIDING TOO BIG TO FAIL -- CONCLUSION -- NOTES -- REFERENCES -- CHAPTER 9 Is the Insurance Industry Systemically Risky? -- ARE INSURANCE COMPANIES SYSTEMICALLY RISKY? -- SYSTEMIC RISK EVIDENCE -- STATE VERSUS FEDERAL REGULATION OF INSURANCE COMPANIES -- CONCLUSION -- NOTES -- CHAPTER 10 Modernizing the Safety Net for Insurance Companies -- CRITIQUE OF THE GA SYSTEM -- Lack of Uniformity -- Post-Insolvency Assessments -- Large Company Failures -- Limited Role of GAs in the 2008-2009 Financial Crisis -- A FEDERAL OPTION FOR MODERNIZING THE INSURER SAFETY NET -- National Consistency and Ex Ante Risk-Based Prefunding -- Mitigating the Moral Hazard Risk -- CONCLUSION -- NOTES -- REFERENCES -- CHAPTER 11 Policyholder Protection in the Wake of the Financial Crisis -- BASIC ASPECTS OF THE U.S. DIRECT INSURANCE INDUSTRY -- Core Promises to Consumers: Insurance Contrasted to Banking -- The Financial Model of Insurance Companies -- Implications of Insurers' Business and Financial Models -- FINANCIAL REGULATION AND QUASI-REGULATION OF INSURERS -- The Constitution of Insurance Regulation -- The Substance and Processes of U.S. Insurance Regulation -- THE U.S. INSURANCE RECEIVERSHIP AND GUARANTY SYSTEM -- Development of the Current Life and Health Insurance Guaranty System -- How Guaranty Associations Work.

Historical Insolvency Performance of the Life and Health Insurance Guaranty Associations -- Ability of the Life and Health Insurance Guaranty System to Protect Consumers in Challenging Economic Circumstances -- CONCLUSION -- APPENDIX 11A: THE CRITICAL ROLE OF PROMPT CORRECTIVE ACTION -- APPENDIX 11B: TABLE OF RELEVANT GUARANTY ASSOCIATION COVERAGE LEVELS BY STATE OR JURISDICTION -- NOTES -- CHAPTER 12 Comparative Regulation of Market Intermediaries: Insights from the Indian Life Insurance Market -- COMPARING LIFE INSURANCE MARKETS IN THE UNITED STATES AND INDIA -- COMPARING DISCLOSURE MANDATES -- The United States -- Experimental Evidence from an Indian Disclosure Mandate -- QUALITY OF ADVICE -- Agent Duties in the United States -- Emerging Standards in India -- QUALITY OF ADVICE IN INDIA: AN EXPERIMENT WITH ASSOCIATED RECOMMENDATIONS -- Experimental Evidence from Auditor Cues -- Recommendations -- CONCLUSION -- NOTES -- About the Authors -- Index.