Insurance Law Between Business Law and Consumer Law

The U.S. legal system has multiple and complex regulatory regimes for insurance which combine statutes, administrative regulations and common law rules. Regulation of insurance is predominantly done by the fifty states, and this increases the system’s complexity. The regulatory regimes generally divide the industry, the subject of regulation, from the consumers, which are to be protected, without regard for the status or sophistication of the insurance consumer. This article focuses on the role of insurance law and regulation within the legal system, and in particular the divide between business or commercial insurance and that provided for consumers, more commonly known as personal lines. The article is divided into six major sections: 1) economic aspects of insurance, 2) academic perceptions of the field, 3) procedural aspects, 4) legislation, 5) the distinction between consumer and commercial risks and 6) substantive aspects of consumer protection in insurance law.