Which of the following is a primary purpose of state insurance departments?

The primary purpose of state insurance departments is to ensure the solvency of insurance companies and to protect consumers. This means that state insurance departments monitor the financial health of insurers to make sure they have sufficient reserves to pay claims. By enforcing regulations and standards, these departments work to maintain a stable insurance market, thereby safeguarding policyholders from insurance company failures. Consumer protection also involves ensuring that policy terms are fair and transparent, and that companies adhere to laws designed to protect enrollees.

While regulating the pricing of health insurance policies and overseeing claim settlements are important aspects of the insurance landscape, they are not the central focus of state insurance departments. Moreover, providing health insurance directly to residents is typically the role of private insurers and the state’s health programs, not the insurance department as a regulatory body. Therefore, the core mission of state insurance departments revolves around solvency and consumer protection, making this the correct answer.