by Linda Gehring

Created on: March 02, 2009

I thought the question itself was rather interesting, since there really is absolutely no regulation whatsoever mostly at either the state or federal level. That is the crux of the matter.

Unfortunately, the American public also misunderstands the functions of both the federal and state government itself. It is to protect the liberties and freedoms of the American people. The government stepped into no man's land when it afford corporations in this country, including the insurance industry, the rights afforded to the lawful citizens under our Constitution in creating the phantom "corporate personhood." Since that time little regulation over any corporate entities in this country has been done at either the state or federal levels.

What is stranger still is this is diametrically opposed to the founder's intent. Their hatred of corporate dominance was evident in the founding of our nation itself. The Boston Tea Party was as much against the corporate dominance of the East India Tea Company and it's monopolies as it was that two cent tax mandated by King George. The greater the power, the more the regulation was their intent, and corporate entities to be strictly monitored over their economic influence in our government. Right now we are worse off than we were prior to the initiation of the Revolutionary War in this respect, and many others.

The excuse has been that the act of incorporating in this country is a voluntary act. As such, the government stays out of corporate business as much as possible. That has not boded well for the citizenry, and it was the Supreme Court that extended this phantom "corporate personhood" way back when that has progressively gained more power and influence in our government than it was ever meant to have.

At this point we even have global insurers operating in this country without any oversight whatsoever. Constitutionally, the federal government is to regulate national concerns and interests, and the state's are to regulate intrastate commerce. Most insurers are incorporate within the state's so inherently it is the state's functions to regulate them, not the federal governments at all. However, as in a great number of cases the federal government actually tied the hands of the state's in the regulation of the insurance industry in an Act of Congress precluding them from doing so.

The federal government, as with the AIG "bankruptcy" has been negligent in regulating global concerns doing business in this country and needs to step up to the plate and start doing it's jobs. It also needs to rescind the Act of Congress that is now preventing the state's from also doing their jobs in regulating incorporate insurers within their state boundaries. The American public is paying the price, and these insurers are gaining more and more influence, with less and less accountability to their policyholders and shareholders.

We cannot afford another "bailout," at the public's expenses for negligence. It is time Congress started earning the money the American people are paying, and the state legislators also. This industry has had a free ride for all too long on the back's of Americans.

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