Q: How do I know whether my state insurance department is under-funded?

Sadly, many state insurance departments are not meeting the minimum funding standards to adequately keep track of the insurance industry. Here are what the states received on their insurance department funding:

• Grade: A+ States: Washington D.C., Florida, Louisiana
• Grade: A+ States: Maine, Massachusetts, New York, Oregon, Wyoming
• Grade: A- States: Alaska, Delaware, Illinois, Nebraska
• Grade: A- States: New Jersey, Virgin Islands, Vermont
• Grade: B States: California, Idaho, Kansas, Kentucky
• Grade: B States: North Carolina, North Dakota
• Grade: C States: Colorado, Maryland, Michigan, Missouri
• Grade: C States: New Hampshire, Ohio, Pennsylvania
• Grade: C States: Rhode Island, Texas, Wisconsin
• Grade: D States: Alabama, Arkansas, Connecticut, Hawaii
• Grade: D States: Iowa, Minnesota, Mississippi, Montana
• Grade: D States: New Mexico, Oklahoma, South Carolina
• Grade: D States: Virginia, Washington, West Virginia
• Grade: F States: Arizona, Georgia, Indiana
• Grade: F States: Nevada, South Dakota, Tennessee, Utah

As you can see, there are more bad grades than good in this state "insurance report card". The insurance funding for the states is obviously below normal, and more states than others received D’s. Perhaps the insurance industry isn’t receiving enough money because their state can’t afford it or simply because there is a serious lack of understanding of the importance of insurance. Whatever it is, it plays a big role for the citizens of the states.