insurance industry exemption

The insurance industry exemption refers to certain laws that limit government oversight over insurance companies, treating them differently from other financial institutions. This means that insurance firms are not always subject to the same regulations, such as securities laws or certain state insurance regulations, allowing them more flexibility in their operations. The exemption aims to balance regulation with the industry's unique risks and nature, but it can also lead to less oversight, requiring careful monitoring to ensure policyholders' protection.