What governmental agencies are responsible for regulating the insurance industry? H.J.S
The principal governmental agency that has been charged with the responsibility of regulating the local financial services sector, including the insurance industry is the Cayman Islands Monetary Authority.
Operating under the mandate of the Cayman Islands Monetary Authority Law (as amended) and the Insurance Law (as amended), CIMA licences, monitors, inspects, and otherwise regulates Classes A and B insurance companies, managers, brokers, and agents.
CIMA’s website, www.cimoney.com.ky is a valuable source of statistics and other information on the domestic and captive (off-shore) aspects of Cayman’s vibrant insurance industry.
For domestic health insurance, the Health Insurance Commission is a second governmental regulatory agency.
Working in concert with CIMA, HIC is responsible for ensuring compliance with the Health Insurance Law and Regulations (as amended). Established by the Health Insurance Commission Law (as amended), HIC has also been mandated to ensure compliance of the Health Insurance Law by residents, employers, employees, and health care providers.
What is the difference between an insurance agent and an insurance broker? E.A.H
An insurance agent is usually affiliated with no more than one insurance company by agency contract, and may only sell that insurer’s products and services, except by special agreement when the company does not have suitable products for the agent’s prospective client.
A broker, on the other hand, is not dependent on an individual insurer for its products and services.
By definition, the broker represents the client, and is expected to negotiate optimal terms with the insurer who offers the best value in products and services for the prospective client’s premium dollar.
In both instances, the compensation is payable in the form of commission payable by the insurer and earned on the basis of the product or service sold.
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