Insurance is a vital tool for protecting wealth and managing risk. The federal government, along with individual state governments, use a series of policies to regulate the insurance industry and require insurance in certain key areas. In some cases, governments make policies of offering low-cost insurance directly to citizens who can't afford it on their own.
Access
Federal and state governments have a number of laws and policies that protect consumers' rights to access insurance. For example, the federal government guarantees access to health insurance, even for consumers with existing health problems, under the Health Care and Education Reconciliation Act of 2010. Other federal laws, such as the Genetic Information Non-discrimination Act of 2007, prevents insurance companies from denying coverage to consumers based on genetic information and testing history.
Requirements
Governments also require consumers to purchase insurance in certain cases. The Health Care and Education Reconciliation Act of 2010 mandates health insurance for most Americans as of 2014. State motor vehicle bureaus and insurance departments require all drivers to have auto insurance up to specified limits before obtaining vehicle registrations or driving on public roads. Employers pay payroll taxes to fund state unemployment insurance programs. Governments also allow third parties, such as mortgage lenders, to require borrowers to buy insurance for property they use loans to purchase.
Contractors
Governments mandate that contractors who bid on government jobs, or jobs that receive government funding, have adequate insurance. This includes employer's liability, bodily injury and damage insurance. A contractor without the necessary insurance will not be able to take on government contracts. Those that do have the right types of coverage are better able to complete jobs on time and protect their workers and investors.
Assistance
Government policies provide insurance assistance, including government-sponsored coverage, in a limited number of cases for individuals in need. This is the case with Medicare and Medicaid health coverage, which rely on government subsidies to provide health care to the elderly and low-income families. General assistance comes in the form of information guides and shopping tips on state insurance department websites to help consumers make appropriate and affordable insurance purchase decisions.
Tags: Care Education, Care Education Reconciliation, Education Reconciliation, Education Reconciliation 2010, federal government, Governments also
