Final answer:
The control of risk by the Insurance Holding Company System Model Regulation involves the regulation of insurance conglomerates at the state level, aiming to maintain financial stability and consumer protection.
Step-by-step explanation:
The control of risk provided by the Insurance Holding Company System Model Regulation and Regulatory Act is achieved through the oversight and regulation of insurance conglomerates, ensuring that they maintain financial stability and comply with legal requirements. Similar to bank holding companies being supervised by the Federal Reserve, insurance holding companies are regulated at the state level, with the National Association of Insurance Commissioners facilitating collaboration among state regulators.
These regulations are designed to protect consumers by keeping the cost of insurance affordable while also ensuring that the companies providing these insurances remain solvent and reliable.