Insurers are faced with a rather daunting challenge when it comes to compliance issues.

As a general matter, they're subject not only to all the laws and regulations that every other business is subject to, but they're also subject to special insurance-specific laws and regulations applicable to every part of the insurance function, including marketing and sales, underwriting and payment of claims. In addition, because insurers are regulated at the state level, companies that operate in a number of states can be subject to a wide variety of standards in each state.

The point here is not to feel sorry for insurance companies having this burden, but to recognize that compliance is indeed a challenge and that insurers should be allowed to engage in practices that facilitate their compliance. This is especially true when one considers that the laws and regulations that insurers must comply with are generally meant to protect consumers.

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