The origins of insurance policies in general differs through various countries, limited policies particularly against damage to homes can be traced to the 17th and 18th centuries, though establishment of newer policies such as health insurance and car insurance did not come until the 20th century.  several supreme court rulings. The first ruling on insurance had taken place  with the supreme court ruling that insurance policy contracts were not in themselves commercial contracts. This stance did not change , when the Supreme court upheld a ruling stating that policies were commercial, and thus were regulatable as other similar contracts were.

Nowadays, many countries - and states in the United States - regulate insurance companies through laws, guidelines and independent commissions and regulatory bodies. These laws and statutes ensure that the policy holder is protected against bad faith claims on the insurers part, that premiums are not unduly high or fixed, and that contracts and policies issued meet a minimum standard.