One of the most heavily regulated forms of insurance in most states is health insurance. Companies are often governed by strict regulations that determine how they can accept or reject policies, as well as how policy rates must be set. These state regulations vary considerably across the country, with some states choosing to be extremely restrictive of the earning potential of companies and some more concerned with the continued coverage of their residents. Every state has to follow some basic federal guidelines, but beyond that is free to set up their own set of rules governing the sale of health insurance, often administered through the state's insurance board. As a consumer, it is worth knowing how these regulations will be applied, and in what way they can affect the type and price of insurance quotes online.

There are two major areas that states choose to control within in the health insurance industry – the administration of plans and their price. States do make an effort to limit their interaction so as not to interfere with a company's ability to turn a profit, but still maintain an environment in which consumers can feel protected. When it comes to the administration of plans, there are a number of ways that a state may choose to regulate health insurance. The first is to issue a directive that policies must come with a guaranteed renewability clause. This means that when a policy term has ended, so long as the policyholder has no outstanding premiums or has defrauded the company, the policy must be renewed. As well, states may choose to moderate the length of time that a company can limit coverage due to a pre-existing condition, again to ensure that consumers receive their full value from their insurance policies.

The other way in which states may choose to affect the operation of health insurance companies within their state is to limit their ability to initially offer coverage and set prices. In states such as Alabama, for example, companies can choose to reject a client's application for coverage based on a pre-examining condition and can also set rates based on that as well. This allows the companies in the state a great deal of freedom to generate profit, but can mean some difficulties for consumers.

What is important to bear in mind is that any online insurance quote must follow the regulations set out by the state. If it does not, it will not be a valid insurance policy in that state and may be of no force and effect. Being aware of state regulations can not only help save money but also ensure that any quote found is above board.