Insurance regulation exists to protect the buying public: to keep insurers able to pay claims and to make them deal fairly. In the United States that job belongs mainly to the states, not Washington.

The McCarran-Ferguson Act is the reason. It says the business of insurance is subject to state laws on its regulation and taxation, and no Act of Congress overrides those laws unless the federal law specifically relates to insurance. Federal antitrust laws (the Sherman, Clayton and FTC Acts) still apply to the extent the business is not regulated by state law.

California has two layers of rules: - The Insurance Code is statute. It changes through legislation or a voter initiative, such as Proposition 103. - Title 10 of the California Code of Regulations, Chapter 5, holds rules the Commissioner adopts under authority from the Code, after public notice and a chance to comment. State rulemaking law requires at least 45 days' notice before the hearing and close of comment. A Commissioner's bulletin cannot amend a statute.

The Insurance Commissioner: since Proposition 103, the Commissioner is elected by the people in the same manner as the Governor, for no more than two four-year terms (§12900). Legislative confirmation comes into play only when a vacancy occurs during a term. The Commissioner performs the duties the Code imposes and enforces the laws regulating insurance (§12921).