Foreign Auto Insurance on the Local Legal Setting

Insurance agencies are regulated by our national laws. The Insurance Commission (National Association of Insurance Commission in US) are public agencies obligated to cast watchful eyes over these insurance companies. They make sure that these companies follow exactly what the laws wants them do. Consequently, any company who violates the rules and regulations will be sanctioned by the Insurance Commission. That is because IC has jurisdiction over their local insurance companies – that is a clear an absolute rule. However, what if the faulting insurance agency is a foreign agency, will the IC still have jurisdiction over the said insurance agency? In a concrete example, say, Mr. Shimoto, a Japanese citizen has entered a contract of insurance with ABC Insurance, an American insurance company. Later on, ABC Insurance breached the agreement between it and the Japanese citizen. Will the IC of Japan have jurisdiction to regulate, reprimand or sanction ABC Insurance given? The answer is in the negative. In the given case, the IC of Japan does not have jurisdiction over ABC Insurance. That is because, only local insurance companies created by under the laws of a national country is under the jurisdiction of IC. Indeed, only the IC (or NAIC) of US has jurisdiction over ABC Insurance company.