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The primary purpose of state insurance regulation is to protect policyholders and ensure the solvency of insurers. Insurance is regulated at the state level, and state departments of insurance monitor company reserves, licensing, policy forms, and rates to maintain fairness and stability. Regulators enforce laws requiring insurers to hold adequate financial reserves to pay claims promptly and fairly, preventing insolvency that could harm policyholders. While insurers also must comply with federal tax rules, taxation is not the main role of insurance regulation. Uniformity across states is limited, as each state enforces its own standards, though model laws from the NAIC (National Association of Insurance Commissioners) help create consistency. The overarching goal remains safeguarding the consumer’s financial interests and confidence in the insurance marketplace, which is the foundation of a claims adjuster’s work.