What are the Insurance industry basis regulation? 2-In the United States, most insurance industry rules are made at the state level. State regulation of the insurance industry and the impact of this arrangement. Are the various states doing things all that differently, or is there a de facto set of national regulations implemented on a state-by-state basis? 2-What is the federal government's current role in regulating the insurance industry to protect public and business interests? 3-Should the federal government's role in regulating the insurance industry be expanded, or are there too many regulations in place already?